Sizing Up Systemic Risk
Regulators now use a framework for identifying systemically important banking institutions that is based on five broad measures of bank structure. Though size is only one of these equally weighted [...]
Deposit Insurance and Depositor Monitoring: Quasi-Experimental Evidence from the Creation of the Federal Deposit Insurance Corporation
In the Banking Acts of 1933 and 1935, the United States created the Federal Deposit Insurance Corporation, which ensured deposits in commercial banks up to $5,000. Congress capped the size [...]
Relationship Lending and the Great Depression: New Measurement and Implications
We demonstrate empirically that the collapse of long-term lending relationships amplified the severity of the Great Depression and affected the pace of recovery. We overcome the lack of loan-level data [...]
Restoring the Rule of Law in Financial Regulation
Increasingly, financial regulation has adopted processes that are inconsistent with adherence to the rule of law. Appropriate regulatory process is fundamental to the ability of regulation to succeed because process [...]
Wall Street vs. The Regulators: Public Attitudes on Banks, Financial Regulation, Consumer Finance, and the Federal Reserve
Few Americans Want “More” Financial Regulations-They Want the Right Kinds of Regulations, Properly Enforced: Polls routinely find that a plurality or majority of Americans want more oversight of Wall Street [...]
How do Credit Supply Shocks Affect the Real Economy? Evidence from the United States in the 1980s
We study the business cycle consequences of credit supply expansion in the U.S. The 1980's credit boom resulted in stronger credit expansion in more deregulated states, and these states experience [...]
Fintech, Regulatory Arbitrage, and the Rise of Shadow Banking
We study the rise of shadow banks in the largest consumer loan market in the US. The market share of shadow banks in originating residential mortgages nearly doubled from 2007-2015. [...]
Analyst Promotions within Credit Rating Agencies: Accuracy or Bias?
We examine whether credit rating agencies reward accurate or biased analysts. Using data collected from Moody’s corporate debt credit reports, we find that Moody’s is more likely to promote analysts [...]
Social capital and bank stability
Using a sample of public and private banks, we study how social capital relates to bank stability. Social capital, which reflects the level of cooperative norms in society, is likely [...]
Did the financial crisis affect the market valuation of large systemic U.S. banks?
We examine the impact of the financial crisis on the stock market valuation of large and systemic U.S. bank holding companies (BHCs). Using the Bertsatos and Sakellaris (2016) model of [...]