banks, a financial transactions tax contributes to financial distress and undoes other policy measures that are used to …This paper studies the impact of a financial transactions tax on a financial market where financial institutions trade …. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a …

that are driven by out of equilibrium behavior, such as clustered volatility and fat tails. We argue that traditional … banks …

banks, a financial transactions tax contributes to financial distress and undoes other policy measures that are used to …This paper studies the impact of a financial transactions tax on a financial market where financial institutions trade …. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a …

fragility of the entire financial system by allowing banks and other intermediaries to “leverage up” by buying one another …

regulatory balance sheet data for U.S. commercial banks and repo market data for broker-dealers. Even for moderate shocks in … normal times, fire-sale externalities can be substantial. For commercial banks, a 1 percent exogenous shock to assets in 2013 … but shows a notable increase starting in 2004, ahead of many other systemic risk indicators. Although the largest banks …

In this paper we study systemic risk for the US and Europe. We show that banks' exposures to common risk factors are … crucial for systemic risk. We come to this conclusion by first showing that relations between US and European banks are … smaller than within each region. We then show that European banks react more strongly to the onset of the financial crisis …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … that highly levered financial intermediaries can offer the lowest interest rates. Low asset volatility enables banks to … borrowers, which can paradoxically lead to riskier banks. Doubling current capital requirements would reduce the default risk of …