IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v53y2021i8p1879-1895.html
   My bibliography  Save this article

What is hiding behind the money accumulating in Utah?

Author

Listed:
  • Howard Tenenbaum

Abstract

Taking up the geographer's task of following and defetishizing the commodity, this research taps into the United States (US) federal banking data to locate the commodity “money†. Law is used to specify money's locations. Relative to the size of its economy, Utah's banks report a lopsided share of US money. This paper unmasks important social relations embedded in the money commodities located in Utah's banks by tracing the history of US banking law, which has played a leading role in the processes responsible for Utah's outsized share of the sub-national monetary landscape. Banking law determined the scope and type of business in which banking firms and their corporate affiliates could engage. Throughout the 20th century, investment banks and commercial firms struggled to claim legal rights to engage in business combinations once deemed illegal: combining non-banking business with a commercial bank. The state of Utah, in coordination with financial and commercial firms, has expanded the legal and financial space of Industrial Loan Banks (ILBs), historically idiosyncratic chartered banks exempt from regulations separating banking firms from non-banking business. Utah marketed their banking charters to global, systemically important financial institutions and large commercial conglomerates, which then established or acquired ILB subsidiaries within the state. From Utah, the die had been cast: the largest non-banking firms on the planet were now legally empowered to accumulate capital in ways that had heretofore been forbidden at other locations. American banking had been transformed.

Suggested Citation

  • Howard Tenenbaum, 2021. "What is hiding behind the money accumulating in Utah?," Environment and Planning A, , vol. 53(8), pages 1879-1895, November.
  • Handle: RePEc:sae:envira:v:53:y:2021:i:8:p:1879-1895
    DOI: 10.1177/0308518X211041371
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0308518X211041371
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0308518X211041371?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. Christian A. Johnson & George G. Kaufman, 2007. "A bank by any other name ..," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 31(Q IV), pages 37-49.
    2. John Krainer, 2000. "The separation of banking and commerce," Economic Review, Federal Reserve Bank of San Francisco, pages 15-24.
    3. Brett Christophers, 2014. "Competition, Law, and the Power of (Imagined) Geography: Market Definition and the Emergence of Too-Big-to-Fail Banking in the United States," Economic Geography, Taylor & Francis Journals, vol. 90(4), pages 429-450, October.
    4. Brett Christophers, 2014. "Competition, Law, and the Power of (Imagined) Geography: Market Definition and the Emergence of Too-Big-to-Fail Banking in the United States," Economic Geography, Clark University, vol. 90(4), pages 429-450, October.
    5. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1.
    6. Daniel Haberly & Dariusz Wójcik, 2015. "Tax havens and the production of offshore FDI: an empirical analysis," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 75-101.
    7. O. Emre Ergungor & James B. Thomson, 2006. "Industrial loan companies," Economic Commentary, Federal Reserve Bank of Cleveland, issue Oct.
    8. Jessie P. H. Poon & Jane Pollard & Yew Wah Chow, 2018. "Resetting Neoliberal Values: Lawmaking in Malaysia's Islamic Finance," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 108(5), pages 1442-1456, September.
    Full references (including those not matched with items on IDEAS)

    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. Sarah Knuth & Shaina Potts, 2016. "Legal geographies of finance Editors' Introduction," Environment and Planning A, , vol. 48(3), pages 458-464, March.
    2. Shaina Potts, 2020. "(Re-)writing markets: Law and contested payment geographies," Environment and Planning A, , vol. 52(1), pages 46-65, February.
    3. Mark Carlson & Kris James Mitchener, 2009. "Branch Banking as a Device for Discipline: Competition and Bank Survivorship during the Great Depression," Journal of Political Economy, University of Chicago Press, vol. 117(2), pages 165-210, April.
    4. KAMKOUM, Arnaud Cedric, 2023. "The Federal Reserve’s Response to the Global Financial Crisis and its Effects: An Interrupted Time-Series Analysis of the Impact of its Quantitative Easing Programs," Thesis Commons d7pvg, Center for Open Science.
    5. P. D. Jonson, 1979. "The State of Australian Economics: Stabilization and Industry Policies: A review article stimulated by F. H. Gruen (ed.), Surveys of Australian Economics, Volume 1," The Economic Record, The Economic Society of Australia, vol. 55(4), pages 297-305, December.
    6. Sriya Anbil & Mark A. Carlson & Christopher Hanes & David C. Wheelock, 2020. "A New Daily Federal Funds Rate Series and History of the Federal Funds Market, 1928-1954," Finance and Economics Discussion Series 2020-059, Board of Governors of the Federal Reserve System (U.S.).
    7. Metiu, Norbert, 2021. "Anticipation effects of protectionist U.S. trade policies," Journal of International Economics, Elsevier, vol. 133(C).
    8. Christian Johnson & George G Kaufman, 2007. "Un banco, con cualquier otro nombre…," Boletín, CEMLA, vol. 0(4), pages 185-199, Octubre-d.
    9. Maria Soledad Martinez Peria, 2002. "The Impact of Banking Crises on Money Demand and Price Stability," IMF Staff Papers, Palgrave Macmillan, vol. 49(3), pages 1-1.
    10. George S. Tavlas, 2015. "In Old Chicago: Simons, Friedman, and the Development of Monetary‐Policy Rules," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(1), pages 99-121, February.
    11. Angeloni, Ignazio, 1999. "The role of a regional bank in a system of central banks : A comment," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 51(1), pages 73-77, December.
    12. Huberto Ennis & Todd Keister, 2016. "Optimal banking contracts and financial fragility," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(2), pages 335-363, February.
    13. Mervyn Allister King, 1993. "Debt Deflation: Theory and Evidence," FMG Discussion Papers dp175, Financial Markets Group.
    14. Edwards, Sebastian, 2020. "Change of monetary regime, contracts, and prices: Lessons from the great depression, 1932–1935," Journal of International Money and Finance, Elsevier, vol. 108(C).
    15. Hejie Zhang & Huiming Lv & Shenghau Lin, 2021. "Financial Development, Saving Rates, and International Economic Volatility: A Simple Model," Mathematics, MDPI, vol. 9(16), pages 1-20, August.
    16. ASIANI, Freddy, 2020. "La sensibilité de l'économie congolaise face aux chocs monétaire et budgétaire : une approche en modèle var standard [The sensitivity of the congolese economy to monetary and budgetary shocks: a st," MPRA Paper 101255, University Library of Munich, Germany.
    17. Bonga-Bonga, Lumengo & Kabundi, Alain, 2015. "Monetary Policy Instrument and Inflation in South Africa: Structural Vector Error Correction Model Approach," MPRA Paper 63731, University Library of Munich, Germany.
    18. Emi Nakamura & Jón Steinsson, 2013. "Price Rigidity: Microeconomic Evidence and Macroeconomic Implications," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 133-163, May.
    19. Peter J. Boettke & Alexander W. Salter & Daniel J. Smith, 2018. "Money as meta-rule: Buchanan’s constitutional economics as a foundation for monetary stability," Public Choice, Springer, vol. 176(3), pages 529-555, September.
    20. International Association for Islamic Economics, 2009. "Economic Solutions From Islamic Finance: Position Statement of the International Association for Islamic Economics الحلول الاقتصادية من التمويل الإسلامي: بيان موقف الجمعية الدولية للاقتصاد الإسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 16, pages 265-269, King Abdulaziz University, Islamic Economics Institute..

    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:53:y:2021:i:8:p:1879-1895. 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.