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. 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.
    4. 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.
    5. Charles P. Kindleberger & Peter L. Bernstein, 2000. "Manias, Panics and Crashes," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-53675-3, December.
    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. 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.
    2. 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.
    3. Godechot, Olivier, 2015. "Financialization is marketization! A study on the respective impact of various dimensions of financialization on the increase in global inequality," MaxPo Discussion Paper Series 15/3, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    4. 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.
    5. Bill Maurer, 2012. "Finance 2.0," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 11, Edward Elgar Publishing.
    6. McFall, Liz, 2014. "Devising Consumption: cultural economies of insurance, credit and spending," OSF Preprints at2nv, Center for Open Science.
    7. 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.
    8. 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).
    9. 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.
    10. repec:spo:wpmain:info:hdl:2441/4ff88coju39nk8b11b5ghfc1ff is not listed on IDEAS
    11. Lacan, Laure & Lazarus, Jeanne, 2015. "A relationship and a practice: On the French sociology of credit," MaxPo Discussion Paper Series 15/1, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    12. Eglė Jakučionytė & Swapnil Singh, 2023. "Emergence of subprime lending in minority neighborhoods," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(6), pages 1547-1583, November.
    13. Fourcade, Marion & Healy, Kieran, 2013. "Classification situations: Life-chances in the neoliberal era," Accounting, Organizations and Society, Elsevier, vol. 38(8), pages 559-572.
    14. Marion Fourcade & Kieran Healy, 2013. "Classification situations: Life-chances in the neoliberal era," Post-Print hal-03470535, HAL.
    15. Cooper, Christine, 2015. "Entrepreneurs of the self: The development of management control since 1976," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 14-24.
    16. Kornberger Martin & Pflueger Dane & Mouritsen Jan, 2017. "Evaluative infrastructures : Accounting for platform organization," Post-Print hal-02276737, HAL.
    17. Driouchi, Tarik & So, Raymond H.Y. & Trigeorgis, Lenos, 2020. "Investor ambiguity, systemic banking risk and economic activity: The case of too-big-to-fail," Journal of Corporate Finance, Elsevier, vol. 62(C).
    18. Pinzur, David, 2016. "Making the grade: infrastructural semiotics and derivative market outcomes on the Chicago Board of Trade and New Orleans Cotton Exchange, 1856–1909," LSE Research Online Documents on Economics 102988, London School of Economics and Political Science, LSE Library.
    19. Luis Araujo & Katy Mason, 2021. "Markets, infrastructures and infrastructuring markets," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 240-251, December.
    20. repec:hal:spmain:info:hdl:2441/6cbt691h0h8o9q5rf0apko0pda is not listed on IDEAS
    21. 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.
    22. 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.

    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.