We contribute to the current regulatory debate by examining the wealth and risk effects of the Dodd-Frank Act on U.S. financial institutions. We measure the effects of key legislative events [...]
A mortgage that defaults is more likely to enter foreclosure rather than renegotiation if it has been securitized in the private non-agency market, according to previous research. We study whether [...]
The two chopsticks in this analogy, which I initially made at a recent conference, are the simple leverage ratio — core capital divided by assets — and the more complex [...]
This paper tests whether the 2003 dividend tax cut—one of the largest reforms ever to a U.S. capital tax rate—stimulated corporate investment and increased labor earnings, using a quasi-experimental design [...]
The implementation of tighter regulation and more powerful supervision may impose large social costs due to the strong reliance on supervisory information that requires direct assessment by a supervisor (i.e. [...]
Syndication increases the overlap of bank loan portfolios and makes them more vulnerable to contagious effects. We develop a novel measure of bank interconnectedness using syndicated corporate loan portfolios, overlap [...]
Bond issuers and rating agencies realized that ratings had become a device for determining whether many institutional investors could legally purchase particular fixed income securities. Because ratings now provided a [...]
Did the Dodd-Frank Act end “too big to fail”? In a pair of blog posts published in 2015, we argued that, at the time, bond and [credit default swap] CDS [...]
If bond investors agree that SPOE [single point of entry, where parent companies are responsible for the losses of failing subsidiaries] has made the parent riskier, we should see the [...]
Vagueness in the law renders the insider trading enforcement regime in the United States unjust and irrational. One way to improve the current regime from the standpoint of justice and [...]