Bank lobbying a source of systemic risk, research argues

Capitol Hill

Risky US mortgage lenders tended to spend more money lobbying against regulation than their more conservative peers - slowing reform and contributing to risk in the system, according to research published by the International Monetary Fund. In a working paper, A Fistful of Dollars: Lobbying and the Financial Crisis, published in December 2009, IMF economists Deniz Igan, Prachi Mishra and Thierry Tressel found lenders that lobbied most also tended to make more and riskier loans. These lenders