We find that the risk-sensitivity of bank holding company subordinated debt spreads at issuance increased with regulatory reforms that were designed to reduce conjectural government guarantees, but declined somewhat with subsequent reforms that were aimed in part at reducing regulatory...

We argue that firm interdependencies, as measured by correlations of stock returns, provide an indicator of systemic risk potential. We find a positive trend in stock return correlations net of diversification effects for a sample of U.S. large and complex banking organizations over 1988-99....

A paper presented at the October 2003 conference quot;Beyond Pillar 3 in International Banking Regulation: Disclosure and Market Discipline of Financial Firms,quot; cosponsored by the Federal Reserve Bank of New York and the Jerome A. Chazen Institute of International Business at Columbia...

This paper presents an intuitive and analytical model of how the federal safety net affects banks' cost of funds. Emphasis is place on distinguishing between fixed and marginal costs in banking, and on the implications of the model for measuring the subsidy. Empirical results strongly suggest...

In antitrust analysis of bank mergers, banking markets are viewed as geographically local, with a quot;clusterquot; of products as the relevant product line. This view is criticized as outdated, now that many bank products are offered by non-bank institutions, and financial institutions'...