Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …

efficient’. While Central Bank policy may have shifted radically now that stability is an explicit objective of policy, the same …

benefits of universal banking. We find that a firm whose equity was underwritten by a bank-affiliated underwriter, when the … same bank was also a large creditor of the firm in the IPO year, exhibits significantly better than average post …. When an investment fund managed by the same bank is heavily involved in the IPO as buyer of the newly-issued equity, the …