The empirical literature identifying gains from financial innovation to financial institution stockholders is sparse. The literature identifying financial firms’ contributions to stockholder value resulting from long term commitment to innovation is, to our knowledge, nonexistent. Several...

Following the onset of the August 2007 subprime mortgage crisis, bank regulators suggest that the old definition of bank may be too narrow – that banking has partially escaped their purview. Perhaps, but this may be partly the regulators’ own doing. We develop this proposition through...