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Showing results 1 to 10 of approximately 103.
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Journal Article
Depositor-preference laws and the cost of debt capital
Under depositor-preference laws, depositors' claims on the assets of failed depository institutions are senior to unsecured general-creditor claims. As a result, depositor preference changes the capital structure of banks and thrifts, thereby affecting the cost of capital for depositories. Depositor preference has no impact on the total value of banks and thrifts, however, unless deposit insurance is mispriced.
Journal Article
An end to too big to let fail? The Dodd-Frank Act's orderly liquidation authority
One of the changes introduced by the sweeping new financial market legislation of the Dodd?Frank Act is the provision of a formal process for liquidating large financial firms?something that would have been useful in 2008, when troubles at Lehman Brothers, AIG, and Merrill Lynch threatened to damage the entire U.S. financial system. While it may not be the end of the too-big-to-fail problem, the orderly liquidation authority is an important new tool in the regulatory toolkit. It will enable regulators to safely close and wind up the affairs of those distressed financial firms whose failure ...
Journal Article
Using financial data to identify changes in bank condition
An empirical study using an early-warning bank failure prediction model and call-report data to predict deterioration in a bank's condition.
Working Paper
Reliability analysis of the Federal Reserve automated payments systems
This paper proposes an analytic framework for the reliability assessment of the automated payments systems used by the Federal Reserve Banks. The failure/recovery behavior of the system currently in operation is modeled as a continuous-time Markov process with varying levels of detail, and the availability is calculated for a wide range of component failure frequencies. Furthermore, alternative system configurations are proposed and analyzed.
Journal Article
The evolving role of the Federal Home Loan Banks in mortgage markets
The Federal Home Loan Banks are part of a system created by the federal government to promote home ownership. This Commentary looks at new initiatives undertaken by these government-sponsored enterprises to expand their role in financial markets-and the attendant implications for their balance sheets.
Conference Paper
Capital requirements and optimal bank portfolios: a reexamination
Conference Paper
Loan sales, implicit contracts, and bank structure
Working Paper
Are banks forward-looking in their loan loss provisioning? Evidence from the Senior Loan Officer Opinion Survey (SLOOS)
The purpose of this study is to empirically analyze if loan loss provisioning is forward-looking. Using a confidential dataset that directly helps us identify loan demand and loan supply at the bank level, we test if the banks? provisioning behavior is different before and after the crisis. We find, for the entire sample of banks, loan loss provisioning is forward-looking and statistically significant in the post-crisis period. Our results show that the top quartiles of banks in our dataset exhibit a forward-looking approach to loan loss provisioning both in the pre- and post-crisis period. ...
Conference Paper
Getting the most out of mandatory subordinated debt requirement