Fluctuations in banks' due diligence are increasingly viewed as a force driving the buildup and unfolding of crises. In a dynamic general equilibrium model, we show that banksí access to retail and wholesale liquidity and the values of loan portfolios govern banks' incentives and effectiveness...

Indispensable coverage of new federal regulatory reforms andfederal financial issues An essential guide covering new federal regulatory reformsand federal financial issues Financial Institutions, Valuations, Mergers and Acquisitions,Third Edition presents a new regulatory framework for...