Theses and Dissertations

Following the Global Financial Crisis of 2007-2008, financial institutions faced regulatory changes due to inherent weaknesses that were exposed by the recession. Within the United States, regulation came via the passing of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, which was heavily influenced by the internationally focused Basel III accord. A key component to both of these sets of regulations focused on raising the capital requirements for financial institutions, as well as creating capital buffers to help protect solvency during economic downturns in the future. The goal of this study is to evaluate the effectiveness of these changes to capital requirements, and to hypothesize as to what would happen if the modern banking system experienced the COVID-19 pandemic recession with the capital and leverage levels of the banking institutions circa 2007. To accomplish this, data from the Federal Reserve describing the capital and leverage ratios of the banking industry will be evaluated during both the Global Financial Crisis of 2007-2008, as well as during the COVID-19 Recession. Specifically, we will look at by how much capital was improved due to Dodd-Frank/Basel III, the resiliency of the capital and leverage ratios during the modern COVID-19 recession, and we will look at the average drop in capital levels caused by the COVID-19 recession and apply these percentage changes to the leverage/capital levels seen in 2007. Given the results, it is clear to see that the change in capital requirements along with the counter-cyclical buffers described in Dodd-Frank and Basel III allowed the banking system to function throughout the COVID recession without approaching insolvency in the slightest, something that ailed many large banks and firms during the Global Financial Crisis. As an answer to our hypothetical, we found that the drop seen affecting the measures of bank capital experienced during the COVID pandemic when applied to values seen at the beginning of the 2007 recession still led to a well-capitalized banking industry as a whole, highlighting the resiliency seen during the COVID recession thanks to the capital buffers put in place, as well as the direct assistance provided by the federal government (via PPP loans and stimulus checks) and the Federal Reserve in keeping the hit on capital to minimal values throughout the pandemic.

Prior research has established a relation between parenting behaviors and symptoms of child psychopathology, and this association may be influenced by both genetic and environmental factors. Gene-environment correlation, or the influence of a child’s genes on the environment they receive, represents one possible mechanism through which genes and environment combine to influence child outcomes. This study examined evocative gene-environment correlation in the relation between parenting and symptoms of child psychopathology in a sample of 676 twins (51.5% female, 58.5% Caucasian, 23.7% Hispanic/Latinx, primarily middle class, MAge=8.43, SD=.62) recruited from Arizona birth records. Using univariate ACE twin biometric models, genetic influences were found to moderately contribute to internalizing symptoms (A=.47, C=.25, E=.28), while externalizing (A=.86, E=.14) and ADHD (A=.84, E=.16) symptoms were found to be highly heritable. The genetic influences for positive (C=.54, E=.46) and negative (C=.44, E=.56) parenting were smaller and found to be nonsignificant. The correlations between parenting and types of psychopathology were examined and bivariate Cholesky decompositions were conducted for statistically significant correlations. Negative parenting was moderately positively correlated with externalizing and ADHD symptoms; the relation between externalizing symptoms and negative parenting was found to be due to shared genetics, whereas the relation between negative parenting and ADHD symptoms was due to the shared environment. The mixed results regarding the role of gene environment correlation in relations between parenting and child psychopathology indicate that further research on the mechanisms of this relation is needed.