IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v43y2011i8p1796-1812.html
   My bibliography  Save this article

The Financial Exception and the Reconfiguration of Credit Risk in US Mortgage Markets

Author

Listed:
  • Philip Ashton

    (College of Urban Planning and Public Affairs, University of Illinois-Chicago, 412 S. Peoria, 231 CUPPA Hall (MC 348), Chicago, IL 60607, USA)

Abstract

This paper engages recent arguments regarding the transformation of credit (default) risk within US mortgage markets. With the growing integration of mortgage lending into volatile circuits of finance, emergency interventions during financial crises have become productive moments for credit risk, securing the broader norms of risk taking by selecting out problematic loans—a distinctive orientation to risk that I characterize as the financial exception. I develop this argument by focusing on emergency interventions during two signal moments in the recent history of US mortgage markets—the late 1980s banking crisis and the post-2007 mortgage crisis. In both cases the regulatory practices of isolating system-threatening risk-segmented borrowers into distinct market spaces, deepening and extending particular forms of credit risk inherited from the New Deal financial system.

Suggested Citation

  • Philip Ashton, 2011. "The Financial Exception and the Reconfiguration of Credit Risk in US Mortgage Markets," Environment and Planning A, , vol. 43(8), pages 1796-1812, August.
    • Handle: RePEc:sae:envira:v:43:y:2011:i:8:p:1796-1812
    DOI: 10.1068/a443
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a443
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Poon, Martha, 2009. "From new deal institutions to capital markets: Commercial consumer risk scores and the making of subprime mortgage finance," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 654-674, July.
    2. Felton, Andrew & Reinhart, Carmen M. (ed.), 2009. "The First Global Financial Crisis of the 21st Century Part II: June–December, 2008," Vox eBooks, Centre for Economic Policy Research, number p199.
    3. Charles P. Kindleberger & Peter L. Bernstein, 2000. "Manias, Panics and Crashes," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-53675-3.
    4. Kevin Fox Gotham, 2009. "Creating Liquidity out of Spatial Fixity: The Secondary Circuit of Capital and the Subprime Mortgage Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 355-371, June.
    5. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Post-Print halshs-00359712, HAL.
    6. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Working Papers halshs-00359712, HAL.
    7. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," CSI Working Papers Series 014, Centre de Sociologie de l'Innovation (CSI), Mines ParisTech.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christopher Niedt & Brett Christophers, 2016. "Value at Risk in the Suburbs: Eminent Domain and the Geographical Politics of the US Foreclosure Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(6), pages 1094-1111, November.
    2. Michael Byrne, 2016. "‘Asset Price Urbanism’ and Financialization after the Crisis: Ireland's National Asset Management Agency," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(1), pages 31-45, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ryan Bubb & Alex Kaufman, 2011. "Securitization and moral hazard: evidence from credit score cutoff rules," Public Policy Discussion Paper 11-6, Federal Reserve Bank of Boston.
    2. Savannah Cox, 2022. "Inscriptions of resilience: Bond ratings and the government of climate risk in Greater Miami, Florida," Environment and Planning A, , vol. 54(2), pages 295-310, March.
    3. Bernardo Bátiz-Lazo, 2017. "Between Novelty and Fashion: Risk Management and the Adoption of Computers in Retail Banking," Palgrave Studies in the History of Finance, in: Korinna Schönhärl (ed.), Decision Taking, Confidence and Risk Management in Banks from Early Modernity to the 20th Century, pages 189-207, Palgrave Macmillan.
    4. Kiviat, Barbara, 2019. "Credit Scoring in the United States," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 21(1), pages 33-42.
    5. Egle Jakucionyte & Swapnil Singh, 2021. "Emergence of Subprime Lending in Minority Neighborhoods," Bank of Lithuania Working Paper Series 94, Bank of Lithuania.
    6. Olivier Godechot, 2015. "Financialization Is Marketization! : A Study on the Respective Impact of Various Dimensions of Financialization on the Increase in Global Inequality," Sciences Po publications 15/3, Sciences Po.
    7. Alaimo, Cristina & Kallinikos, Jannis, 2022. "Organizations decentered: data objects, technology and knowledge," LSE Research Online Documents on Economics 112470, London School of Economics and Political Science, LSE Library.
    8. Fourcade, Marion & Healy, Kieran, 2013. "Classification situations: Life-chances in the neoliberal era," Accounting, Organizations and Society, Elsevier, vol. 38(8), pages 559-572.
    9. Scott, Susan V., 2010. "Understanding the characteristics of techno-innovation in an era of self-regulated financial services," LSE Research Online Documents on Economics 37867, London School of Economics and Political Science, LSE Library.
    10. Tordjman, Hélène, 2011. "La crise contemporaine, une crise de la modernité technique," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 10.
    11. Olivier Godechot, 2015. "Financialization Is Marketization!," Working Papers hal-03459520, HAL.
    12. Lei Ding & Jackelyn Hwang, 2016. "The Consequences of Gentrification: A Focus on Residents’ Financial Health in Philadelphia," Working Papers 16-22, Federal Reserve Bank of Philadelphia.
    13. Bill Maurer, 2012. "Finance 2.0," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 11, Edward Elgar Publishing.
    14. McFall, Liz, 2014. "Devising Consumption: cultural economies of insurance, credit and spending," OSF Preprints at2nv, Center for Open Science.
    15. Cochoy, Franck & Dubuisson-Quellier, Sophie, 2013. "The sociology of market work," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 15(1), pages 4-11.
    16. Martinez, Daniel E. & Pflueger, Dane & Palermo, Tommaso, 2022. "Accounting and the territorialization of markets: A field study of the Colorado cannabis market," Accounting, Organizations and Society, Elsevier, vol. 102(C).
    17. Olivier Godechot, 2015. "Financialization Is Marketization!," SciencePo Working papers Main hal-03459520, HAL.
    18. Kornberger, Martin & Pflueger, Dane & Mouritsen, Jan, 2017. "Evaluative infrastructures: Accounting for platform organization," Accounting, Organizations and Society, Elsevier, vol. 60(C), pages 79-95.
    19. repec:hal:spmain:info:hdl:2441/5qjkarlp3e8a2a40vbqo698d3v is not listed on IDEAS
    20. Lipartito, Kenneth, 2011. "The narrative and the algorithm: Genres of credit reporting from the nineteenth century to today," MPRA Paper 28142, University Library of Munich, Germany.
    21. Olivier Godechot, 2019. "Conclusion: What finance manufactures," Post-Print hal-03393812, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:43:y:2011:i:8:p:1796-1812. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.