Banking

Structural Corporate Degradation Due to Too-Big-to-Fail Finance

Corporate governance incentives at too-big-to-fail financial firms deserve systematic examination. For industrial conglomerates that have grown...

Stress Testing During Times of War

The Covid crisis raises important questions about the role of stress testing during periods of systemic distress. Should stress testing of banks be...

Everything I Know About the Bond Market I Learned from Litwin v. Allen

This essay focuses on the classic 1940 case Litwin v. Allen, 25 N.Y.S.2d 667 (1940), in which the court ruled that directors and officers of a bank were...

Bailout Blues: the Write-Down of the AT1 Bonds in the Credit Suisse Bailout

The recent bailout of Credit Suisse is noteworthy for many reasons. One of them is that, while AT1 bondholders were wiped out, shareholders were not. This...

Financial Integration and Firm Performance: Evidence from Foreign Bank Entry in Emerging Markets

While the positive growth effects of financial integration are extensively documented, little is known of its impact on small and young firms. This...

Empowering the ECB to Supervise Banks: A Choice-Based Approach

Corporate Governance of Banks after the Financial Crisis

Making Bank Resolution Credible

Financial difficulties at large financial institutions present governments and regulators with an unenviable dilemma. On the one hand, they are...

The Existential Search of the European Banking Authority

The European Banking Authority (EBA), an EU agency that works to ensure effective and consistent prudential regulation and supervision across the...

Corporate Governance of Banks and Financial Institutions: Economic Theory, Supervisory Practice, Evidence and Policy

Banks are special, and so is the corporate governance of banks and other financial institutions as compared with the general corporate governance of...

The Carrot and the Stick: Bank Bailouts and the Disciplining Role of Board Appointments

This paper empirically examines the Capital Purchase program (CPP) under TARP that was used by the U.S. government to bail out distressed banks with...

Banking Stability: The Impact of Financial Sector Heterogeneity on Systemic Risk in Financial Crises and Economic Recessions

Financial institutions’ heterogeneity, a high degree of dissimilarity across multiple dimensions, including business focuses, correlated asset...