We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We …

The failure of Lehman Brothers highlighted the severe lapses in risk management and regulatory oversight that brought … on and intensified the global financial crisis. This paper presents a structural credit risk model that provides useful … insufficient collateral compounded the effects of dangerously high leverage and resulted in undercapitalization and excessive risk …

liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the … fund managers are more conservative the liquidity requirement has to be strengthened while the solvency one relaxed. Higher … financial intermediary is opaque) and, correspondingly, liquidity requirements should be tightened. The model is applied to …

Does an increase in competition increase or decrease bank stability? I exploit how the state-specific process of … significantly increases bank stability. This result is robust to the inclusion of additional fixed effects and other influences … loans and increases bank profitability. These findings suggest that competition increases stability as it improves bank …

with high locally non-diversifiable risks also benefit relatively more from deregulation in terms of higher bank stability …

with high locally non-diversifiable risks also benefit relatively more from deregulation in terms of higher bank stability …

policy and therefore ultimately the real economy. In particular, it facilitates banks' liquidity management. This paper aims … at extending the literature which views interbank markets as mutual liquidity insurance mechanism by taking into account … persistence of liquidity shocks. Following a theory of long-term interbank funding a financial system which is modeled as a micro …

market for pricing and trading mortgage credit risk, which has grown in size and liquidity over time. The CRT programs …We summarize and evaluate Fannie Mae and Freddie Mac's credit risk transfer (CRT) programs, which have been used since … 2013 to shift a portion of credit risk on more than $1.8 trillion of mortgages to private sector investors. We argue that …