This paper examines the effects of changes in bank regulatory environment on the risk, return, and liquidity characteristics of equity portfolios of U.S. bank holding companies between 1997 and 2016. Using a comprehensive sample of bank and hedge fund holdings data we examine the impact of the...

We estimate the volume of liquidity creation by U.S. bank holding companies between 1997 and 2015, and examine the impact of changes in macrofinancial policies on the dynamics of this process. We focus on three major policy developments occurring in the aftermath of the 2007-2009 financial...