This phenomenon in bank operation of the banking system and the coming strengthening of the regulatory framework for collateralized securities products linked to the banking system appear likely to take bank industry to a new dynamic that would lead toward a more universal characteristics of banking practices.
Experience (PDF),” Research Department Working Paper 1103 (Dallas: Federal Reserve Bank of Dallas), http://dallasfed.org/research/papers/2011/wp1103.pdf. 6  For more discussion of the effects of low household equity on the ability of homeowners to improve their financial positions, see Christopher Mayer, Karen Pence, and Shane M. Sherlund (2009), “The Rise in Mortgage Defaults,” Journal of Economic Perspectives, vol. 23 (Winter), pp. 27–50.