Kathryn Judge, a leading authority on banking and finance from Columbia University, joins the discussion about Visa's monopolistic grip on debit transactions. She sheds light on the Justice Department's antitrust lawsuit against Visa, alleging it suppresses competition and exploits fees. The conversation reveals how Visa's dominance stifles innovative payment solutions like Apple Pay. Judge emphasizes the intricate relationships in the middleman economy, underlining the need for a fairer and more transparent payment system for consumers.

Kathryn Judge, a finance professor at Columbia Law School, is troubled by the rise of intermediary platforms between products and services and the customers who eventually purchase them. Thanks to technology and globalization, she shows how the importance of “middlemen” in the value chain has increased, along with the length of global supply chains. Judge details the downsides and risks of this trend. And she explains how customers and workers alike can lead to intermediaries offering more transparency and social value. Judge wrote the book "Direct: The Rise of the Middleman Economy and the Power of Going to the Source.”

Vox's Emily Stewart talks with Kathryn Judge, professor at Columbia Law School and author of the new book Direct: The Rise of Middleman Economy and the Power of Going to the Source. They discuss how middlemen — which include real estate agents, stock brokers, but also Amazon and Walmart — came to assume such an outsized role in our economy, the pros and cons of middlemen in different market contexts, why Prof. Judge sees a fundamental difference between Etsy and Amazon, and how we consumers can change how we decide what to buy in order to help push the economy in a radically different direction.Host: Emily Stewart (@EmilyStewartM), senior correspondent, VoxGuests: Kathryn Judge (@ProfKateJudge), Harvey J. Goldschmid Professor of Law, Columbia University; authorReferences:  Direct: The Rise of the Middleman Economy and the Power of Going to the Source by Kathryn Judge (Harper Business; 2022) "So Much for Cutting Out the Middleman" by Kathryn Judge (The Atlantic; June 9) "What Is Web3?" by Thomas Stackpole (Harvard Business Review; May 10) "The awful American consumer" by Emily Stewart (Vox; Apr. 7) Enjoyed this episode? Rate Vox Conversations ⭐⭐⭐⭐⭐ and leave a review on Apple Podcasts.Subscribe for free. Be the first to hear the next episode of Vox Conversations by subscribing in your favorite podcast app.Support Vox Conversations by making a financial contribution to Vox! bit.ly/givepodcastsThis episode was made by:  Producer: Erikk Geannikis Editor: Amy Drozdowska Engineer: Patrick Boyd Deputy Editorial Director, Vox Talk: Amber Hall Learn more about your ad choices. Visit podcastchoices.com/adchoices

Since the fall of Silicon Valley Bank (SVB) in March 2023, many investors have been closely monitoring the Federal Reserve’s recent lending to U.S. banks, which amounts to roughly $100 Billion as of late June.What has received far less attention is the Federal Home Loan Bank (FHLB) system, which has extended over $1 Trillion of liquidity (10x the Fed!) to banks throughout the U.S.Kathryn Judge, Harvey J. Goldschmid Professor of Law at Columbia Law School, joins Forward Guidance to explain the history and purpose of the FHLBanks, calling them the “lender of second-to-last resort.” Judge argues that the FHLB system has grown beyond its original mission and that reform is desperately needed. Judge also opines on the SEC’s move to regulate crypto, as well as SOFR’s replacement of LIBOR. Filmed on June 29th, 2023.____Follow Kathryn Judge on Twitter https://twitter.com/ProfKateJudgeFollow Jack Farley on Twitter https://twitter.com/JackFarley96Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidanceFollow Blockworks on Twitter https://twitter.com/Blockworks_____Kathryn Judge’s book, “Direct: The Rise of the Middleman Economy and the Power of Going to the Source”: https://kathrynjudge.com/books/direct“The Problem Lender of Second-to-Last Resort”: https://prospect.org/economy/2023-03-29-problem-lender-federal-home-loan-banks/____Use code GUIDANCE20 to get 20% off Permissionless 2023 in Austin:https://blockworks.co/event/permissionless-2023Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/____Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:https://rb.gy/5weeywMarket commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos____Timestamps:(00:00) U.S. Banking System Is "Uneven"(03:06) What Is The Federal Home Loan Bank (FHLB) System?(07:24) Deregulation in 1980s and 1990s(11:22) Commercial Banks vs. Thrifts (And Glass–Steagall)(17:31) FHLB Lending During Great Financial Crisis (GFC)(25:14) "FHLB Has Never Lost Money On Advances"(33:54) FHLB's "Abuses" Must Stop(34:28) Permissionless(41:24) What Will New Bank Regulation Look Like?(50:38) Risk-Weighting In Bank Capital Regulations(53:42) Blockworks Research(54:42) Held-To-Maturity Accounting(58:37) The Rise Of Middlemen in Finance And Business(01:06:00) SEC's War With Crypto(01:08:04) The End Of LIBOR Eurodollar Contracts____Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

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