Banks hold liquid and illiquid assets. An illiquid bank that receives a liquidity shock sells assets to liquid banks in …

capital should isolate the role that the market plays in disciplining banks. I document that since the Federal Deposit … investors, the mix of debt has had a positive effect on the future outcomes of distressed banks, as if the presence of debt … investors has worked to limit moral hazard. To mitigate concerns about selection, I use the variation across banks in the mix of …

, national banks raise overdraft fees relative to state-chartered banks in affected states. However, banks in affected states …

In August of 2007, banks faced a freeze in funding liquidity from the asset-backed commercial paper (ABCP) market. We … investigate how banks scrambled for liquidity in response to this freeze and its implications for corporate borrowing. Commercial … banks in the United States raised deposits and took advances from Federal Home Loan Banks (FHLBs). In contrast, foreign …

suggest possible solutions. We begin this paper by explaining why governance of banks differs from governance of non …