In response to the recent severe financial crisis and the worst recession since the Great Depression, the U.S. Congress enacted and President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) in July 2010. An important objective of DFA is to mitigate the...

After the Latin American Debt Crisis of 1982, the official response worldwide turned to minimum capital standards to promote stable banking systems. Despite their existence, however, such standards have still not prevented periodic disruptions in the banking sectors of various countries. After...

Purpose: The purpose of this paper is to discuss and then analyze the interdependency between bank and sovereign risk before, during and after the financial crisis. Design/methodology/approach: Our approach is based upon an examination of 44 large banks headquartered in 13 countries. Eight of...