The authors examine investors' reactions to announcements of large seasoned equity offerings (SEOs) by U.S. financial institutions (FIs) from 2000 to 2009. These offerings include market infusions as well as injections of government capital under the Troubled Asset Relief Program (TARP). The...

To those who don't know, the term "shadow banking" probably has a negative connotation. This primer draws parallels between what has been termed the shadow banking sector and the traditional banking sector—showing that they are similar in many ways.

Several arguments are relevant. (1) In the absence of the zero lower bound (ZLB), the optimal steady-state inflation rate, according to standard reasoning, lies between deflation at the steady-state real interest rate and the Calvo-model value of zero, with calibration indicating a larger weight...

After two straight quarters of slight improvement, profitability at Eighth District banks dipped in fourth quarter 2009.

Related links: http://www.richmondfed.org/publications/research/region_focus/2011/q1/federal_reserve_weblinks.cfm

Since the Federal Open Market Committee (FOMC) began announcing its policy decisions in 1994, U.S. stock returns have on average been more than thirty times larger on announcement days than on other days. Surprisingly, these abnormal returns are accrued before the policy announcement. The excess...

Remarks by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, at the Global Interdependence Center's Conference on Capital Markets in the Post Crisis Environment, Stockholm, Sweden, September 29, 2011

The recession officially ended in June, 2009, yet more than a year later, many banks throughout the nation are struggling to recover from the downturn. This is especially pronounced in the 12th District. This article addresses some of the issues that contributed to the still-prevalent banking...

This paper investigates the intraday effects of unannounced foreign exchange intervention on bid-ask exchange rate spreads using official intraday intervention data provided by the Danish central bank. Our starting point is a simple theoretical model of the bid-ask spread which we use to...