We perform a comprehensive analysis of the US banking system during 2007-2013 period by incorporating specific hedging and trading variables, as well as performance measures. We discover that even though hedging might reduce profitability and firm value, it might also minimize tail risks by a...

The market share of foreign-owned banks (subsidiaries, branches, and agencies) in the United States grew dramatically during the 1980s and early 1990s, amid fears that foreign banks were out-competing U.S.-owned banks in their home market. However, more recent data show that growth of the market...

We conjecture that lenders' decisions to provide liquidity are affected by the extent to which they internalize negative spillovers. We show that lenders with a large share of loans outstanding in an industry provide liquidity to industries in distress when spillovers are expected to be strong,...