From the Great Recession to the COVID-19 Pandemic: A Financial History of the United States 2010-2020: A Comparison of the Government’s Response to the Two Financial Crises that Bookended the 2010 to 2020 Decade

Authors

Lissa Lamkin Broome, University of North Carolina School of LawFollow

Document Type

Article

Publication Date

2024

Publication

Florida International University Law Review

Volume

18

Abbreviation

FIU L. Rev.

First Page

609

Abstract

This Article compares the U.S. government’s responses to the 2008 Financial Crisis and the economic crisis triggered by the COVID‑19 pandemic, examining both legislative action and regulatory intervention. It evaluates how the Dodd‑Frank Act reshaped emergency tools and how Congress and regulators adapted or temporarily suspended those constraints in 2020. The analysis focuses on Section 13(3) Federal Reserve lending, the FDIC’s systemic-risk exception, and the Treasury’s Exchange Stabilization Fund, showing how their roles differed significantly across the two crises. The Article highlights the far larger and more direct pandemic‑era relief directed to households and small businesses, contrasting it with the banking‑focused interventions of 2008. It identifies six key lessons—act quickly, act forcefully, act on multiple fronts, maintain confidence, ensure liquidity, and support the vulnerable—and reflects on the political and moral‑hazard consequences of repeated large‑scale interventions.