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Interbank Connections, Contagion and Bank Distress in the Great Depression

Calomiris, Charles W. - 2019

Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression. New data on interbank connections reveal that banks were much more likely to close when their correspondents closed. Further, after the Federal Reserve was established, banks'...

Persistent link: https://www.econbiz.de/10012869069

Central Banks and the Financial System

Giavazzi, Francesco - 2010

Financial systems are inherently fragile because of the very function which makes them valuable: liquidity transformation. Regulatory reforms can strengthen the financial system and decrease the risk of liquidity crises, but they cannot eliminate it completely. This leaves monetary policy with a...

Persistent link: https://www.econbiz.de/10013139754

Stressed Not Frozen : The Fed Funds Market in the Financial Crisis

Afonso, Gara - 2010

This paper examines the impact of the financial crisis of 2008 on the federal funds market, specifically the bankruptcy …

Persistent link: https://www.econbiz.de/10013146948

Evolution and Revolution in the Argentine Banking System Under Convertibility : The Roles of Crises and Path Dependence

Alston, Lee J. - 2001

We provide an analytical narrative of the political and economic causes and consequences of institutional changes in the Argentine banking system. We devote most of our attention to the privatization of the provincial banks. Our story differs from the prevailing wisdom in its stress on the key...

Persistent link: https://www.econbiz.de/10012787943

Over the Cliff : From the Subprime to the Global Financial Crisis

Mishkin, Frederic S. - 2010

-fledged financial crisis. It discusses why, although the Lehman Brothers bankruptcy was a key trigger for the global financial crisis …

Persistent link: https://www.econbiz.de/10013135058

Hedge Funds as Liquidity Providers : Evidence from the Lehman Bankruptcy

Aragon, George O. - 2009

Using the September 15, 2008 bankruptcy of Lehman Brothers as an exogenous shock to funding costs, we show that hedge … funds act as liquidity providers. Hedge funds using Lehman as prime broker could not trade after the bankruptcy, and these …-connected hedge funds in turn experienced greater declines in market liquidity following the bankruptcy than other stocks; and, the …

Persistent link: https://www.econbiz.de/10013156424

Deciphering the Liquidity and Credit Crunch 2007-08

Brunnermeier, Markus Konrad - 2010

This paper summarizes and explains the main events of the liquidity and credit crunch in 2007-08. Starting with the trends leading up to the crisis, I explain how these events unfolded and how four different amplification mechanisms magnified losses in the mortgage market into large dislocations...

Persistent link: https://www.econbiz.de/10012758056

Floating a "Lifeboat" : The Banque De France and the Crisis of 1889

Hautcoeur, Pierre Cyrille - 2014

When faced with a run on a "systemically important" but insolvent bank in 1889, the Banque de France pre-emptively organized a lifeboat to ensure that depositors were protected and an orderly liquidation could proceed. To protect the Banque from losses on its lifeboat loan, a guarantee syndicate...

Persistent link: https://www.econbiz.de/10013054521

The Run on Repo and the Fed's Response

Gorton, Gary - 2018

The Financial Crisis began and accelerated in short-term money markets. One such market is the multi-trillion dollar sale-and-repurchase (“repo”) market, where prices show strong reactions during the crisis. The academic literature and policy community remain unsettled about the role of repo...

Persistent link: https://www.econbiz.de/10012913789

O.M.W. Sprague (the Man Who "Wrote the Book" on Financial Crises) and the Founding of the Federal Reserve

Rockoff, Hugh - 2014

O.M.W. Sprague was America's leading expert on financial crises when America was debating establishing the Federal Reserve. His History of Crises under the National Banking Act is one of the most enduring legacies of the National Monetary Commission; a still frequently cited classic. Since the...

Persistent link: https://www.econbiz.de/10013061687