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dictionary of reward and riskTM 2012
Last revised: January 10, 2013

a B C D E F G H I J K L M N O P Q R S T U V W X Y Z



n. A person or entity that a court finds insolvent and places in bankruptcy (q.v.).
adj. Subject to a process to resolve insolvency (q.v.).
v.t. To force into bankruptcy (q.v.).
n. A legal process designed to resolve insolvency (q.v.).



Dodd-Frank Act ("DFA")
n. Public Law 111-203, "Dodd-Frank Wall Street Reform and Consumer Protection Act." A controversial federal statue that Pres. Obama signed into law on 7/21/10. Its "Volcker Rule" aims to eliminate proprietary trading in regulated financial institutions. Its Consumer Finance Protection Bureau ("CFPB") has lowered profits in consumer banking.



Fed, The
n. The Federal Reserve. (q.v.)
Federal Reserve, The
n. The Federal Reserve Board, Federal Reserve System, Federal Reserve Bank of New York, etc., as determined in context.
Sentence: As Witt Genstein said, "For a true believer in The Fed, nothing is tragic."
Federal Reserve Board ("FRB")
n. The Board of Governors of the Federal Reserve System.
Financially Stability Oversight Council ("FSOC")
n. A legal entity that Title I of the Dodd-Frank Act (q.v.) created, allegedly, to save the U.S. from future financial disasters. The FSOC consists of a representative from each of the nine important federal regulators, plus a representative from the insurance industry. The FSOC has authority to do things and require others to do things.
The FSOC is responsible for identifying SIFI's ("q.v."), which could overturn our financial apple cart. You can learn more about the FSOC, here. (Source: SEC)
 "Hotel California" provision of the Dodd-Frank Act 
n. The provision of the DFA that says that large bank holding companies that received TARP funds can't avoid FRB supervision by disposing of their banks. (Source: US Senate)


gross domestic product ("GDP")
n. "[T]he output of goods and services produced by labor and property located in the United States." (Source: BEA)



n. The state or condition of being insolvent (q.v.).
adj. Unable to satisfy creditors, because of either insufficient assets, or insufficient cash inflow ("technically insolvent"). (Source:





macro economics
n The branch of economics that concerns "the measurement analysis, and control of aggregate economic activity." 
Typically, "aggregate" means in a national economy, but global economic activity is technically "aggregate". Aggregate economic activity includes aggregate employment and unemployment, other resources in aggregate (e.g., land and capital), aggregate production, the aggregate money supply, and the price level. 
Major topics in macro economics include inflation, employment, unemployment, gross domestic product (q.v.) ("GDP"), recession and depression, and the impact of government spending on aggregate economic activity.
micro economics
n. The branch of economics that encompasses the theory of choice, including the theory of the consumer and the theory of the firm.






n. The practice of indicating on a map, historically, by a red outline, a geographical area that is undesirable for doing business, such as insuring property, making mortgage loans, or selling products door-to-door.
For example, in the 1930s, the Home Owners Loan Corporation (HOLC) developed such maps. (The Black Commentator
The federal government personnel who produced maps with red-lining said that it conveyed useful information, and for-profit business used the information. The persons living inside red-lined areas felt unfairly tarred by the red line.
(to) regulate
v.t. To create and enforce regulations (q.v.). 
n. A regulation is a rule of behavior that an authority ("the regulatory authority", "the regulator") prescribes for each subordinate person or organization to obey. (Source:
Examples of regulations include Federal Reserve Board regulations A, ... Z, AA, ... QQ, RR, and VV. (Source: FRB
A regulation puts some state enforcement power behind some sort of written opinion about behavior.
For example, the SEC regulates the way that public corporations issue securities, and the way that securities markets operate. 
n. A person or agency that regulates. 
For example, the main governmental regulator of commodity futures exchanges is the Commodity Futures Exchange Commission.
A regulator can be either an enemy or a friend to an industry's customers, workers, or owners.
regulatory capture
n. The state in which a regulated industry, economic sector or market, political entity, or other thing subject to regulation influences or controls its regulator.
A regulated industry sometimes captures its regulator. Wikipedia list allegedly "captured" regulators.
The do-gooders, who helped persuade the legislators to regulate an industry, may find that the industry has managed with a form of political jiu-jitsu to impose its own will and nullify the wishes of the do-gooder.


n. A pet name for MetLife, which has used the Peanuts character, Snoopy, as its "corporate mascot" for many years. MetLife owns and operates airships, called "Snoopy One", etc., and which feature Snoopy, dressed as a WWI Ace, on the fuselage. (Source: Wikip.)
 systemically important financial institution ("SIFI")
n. A non-bank financial institutions that has the potential to destroy our financial system, if the FSOC doesn't identify and keep them from going rogue and running wild. (Source:  U.S Senate)  


Troubled Asset Relief Program ("TARP")
n. A program of the U.S. government, created on 10/3/08, during the G.W. Bush Presidential administration, in response to failures of large, private financial institutions and the conservatorship of Fannie Mae and Freddie Mac. The law authorized TARP to spend up to $700 billion (that amount, later change) of taxpayer money to support a variety of financial instutions by buying their assets and equity. In 12/08 TARP spent $17.4 billion on (non financial) Chrysler and General Motors.