Reserve Board of Governors demonstrate that deposit insurance influenced the composition of bank suspensions in these states … each system, the bank failure rate rose to an unsustainable height and the system ceased operations …

accounting for loan portfolios held to maturity. Marked-to-market bank assets have declined by an average of 10% across all the …-- unlike insured depositors, uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving … them incentives to run. A case study of the recently failed Silicon Valley Bank (SVB) is illustrative. 10 percent of banks …

eroded the profitability of banks' traditional activities. Bank failures, insignificant from 1934, the date the Glass … centers on fixed-rate deposit insurance: the insurance gives bank shareholders an incentive to take on risk when the value of … bank charters falls. We propose and test an alternative explanation based on corporate control considerations. We show that …

When a bank experiences a negative shock to its equity, one way to return to target leverage is to sell assets. If … asset sales occur at depressed prices, then one bank's sales may impact other banks with common exposures, resulting in … explains how the distribution of bank leverage and risk exposures contributes to a form of systemic risk. We compute bank …