' short-term debt exposures. Consistent with moral hazard in the form of risk-taking by large, under-capitalized banks to … exploit government guarantees, arbitrage regulatory risk weights, and access central-bank funding, we find that this carry …-trade behavior is stronger for large banks, and banks with low Tier 1 ratios and high risk-weighted assets, in both GIPSI and non …

case that there were four primary failures contributing to the crisis : excessive risk-taking in the financial sector due … to mispriced government guarantees; regulatory focus on individual institution risk rather than systemic risk; opacity of …

case that there were four primary failures contributing to the crisis : excessive risk-taking in the financial sector due … to mispriced government guarantees; regulatory focus on individual institution risk rather than systemic risk; opacity of …

case that there were four primary failures contributing to the crisis : excessive risk-taking in the financial sector due … to mispriced government guarantees; regulatory focus on individual institution risk rather than systemic risk; opacity of …

find support for risk-shifting and regulatory arbitrage motives at banks in that carry trade behavior is stronger for large … banks and banks with low capital ratios and high risk-weighted assets. We also find evidence for home bias and moral suasion …

capitalized. We employ a set of headline facts about the build-up of such risk exposures to explain how and why LCFIs adopted this … in decades preceding the current one, allowing LCFIs to take on excessive systemic risk. We also examine alternative … banking, excess liquidity due to global imbalances and mispricing of risk due to behavioral biases have some merit as …