"Bank failures are widely feared for a number of reasons, including concern that depositors may suffer both losses in … regulators to protect all depositors in bank failures. This is likely to increase both moral hazard risk-taking by banks and poor … agency behavior by regulators with large ultimate costs to taxpayers. While ways of reducing the credit loss in bank failures …

We use matched, bank-level panel data on Libor submissions and credit default swaps to decompose bank-funding spreads … and that this premium declined at short maturities following Federal Reserve interventions in bank funding markets. At …

Diamond and Dybvig (1983) is commonly understood as providing a formal rationale for the existence of bank …-run equilibria. It has never been clear, however, whether bank-run equilibria in this framework are a natural byproduct of the … (2003) demonstrate that bank-run equilibria can exist under an optimal contractual arrangement. The difficulty of preventing …