How does securitization affect the risk of the loans that are originated for securitization? While the standard view is that the originate-to-distribute (OTD) model weakens the originator's screening incentives and leads to higher risk, theories on reputation suggest that an originator's concern...

We connect three disparate facts associated with the spike in innovation in securitized mortgages before the 2007-09 crisis: a) elevated innovation in MBS collateral associated with greater loan purchases by MBS issuers (“sponsors”), b) an economically large proportion of delinquencies...

This paper examines the ongoing integration of banks and markets through the blurring of boundaries between them. It considers how this integration affects the raison d'etre of banks and its implications for the future evolution of banks, systemic risk and prudential regulation. Shadow banks, PE...

This paper reviews the literature on how the evolution of banks and markets is blurring the distinction between them, and the implications of this for post-crisis regulation of banks and markets. Unanswered research questions are identified

We empirically examine the Capital Purchase Program (CPP) used by the US gov- ernment to bail out distressed banks with equity infusions during the Great Recession. We find strong evidence that a feature of the CPP – the government’s ability to ap- point independent directors on the board of...

We empirically examine the Capital Purchase Program (CPP) used by the US government to bail out distressed banks with equity infusions during the Great Recession. We find strong evidence that a feature of the CPP - the government's ability to appoint independent directors on the board of an...