Traditional theory suggests that high franchise value limits bank risk-taking incentives. Then why did many banks with …

of distressed banks. We first explore the principal features of corporate bankruptcy law. Next, we examine the specific … characteristics that distinguish banks from other corporations, and argue that these features are largely neglected in corporate …

leaders' and the followers' banks. In a second treatment followers know that there are economic linkages between the leaders …' and the followers' banks. Our results suggest that deposit withdrawals are strongly contagious across banks only when … depositors know that there are economic linkages between banks. The contagion of withdrawals is by a change in beliefs about bank …

The paper studies risk mitigation associated with capital regulation, in a context where banks may choose tail risk … liability. Moreover, higher capital may have an unintended effect of enabling banks to take more tail risk without the fear of …