This paper argues that creditors reflect the financial-safety-net aspect of bank lobbying, plausibly considering the connection between bank lobbying and government bailouts. Using a structural approach, I show that bank lobbying is negatively associated with the occurrence of a run-like...

This paper tests whether an increase in insured deposits causes banks to become more risky. We use variation introduced by the U.S. Emergency Economic Stabilization Act in October 2008, which increased the deposit insurance coverage from $100,000 to $250,000 per depositor and bank. For some...