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This article analyzes the manifold situations in which the efficient-market hypothesis (EMH) has influenced—or has failed to influence—federal securities regulation and state corporate law, and the prospective roles for the EMH in these contexts. In federal securities regulation, the EMH has...
Persistent link: https://www.econbiz.de/10010603964
In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a … particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a … outside the bank as depositors rushed to withdraw their deposits. There was always a fear that this could spark a systemic run …
Persistent link: https://www.econbiz.de/10004982519
institutions and instruments to tackle bank distress. Its most notable feature is the proportionality of measures and the …
Persistent link: https://www.econbiz.de/10012960405
During banking crises, regulators must decide between bailouts or liquidations,neither of which are publicly popular. A comprehensive assessment of regulators,however, requires examining all their decisions against regulators’ objectives of preserving financial stability while discouraging...
Persistent link: https://www.econbiz.de/10013289554
natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …
Persistent link: https://www.econbiz.de/10011975387
code could affect bank safety, stability, and capitalization levels.We analyze here how and why the 2017 tax act will … incentivize banks to be better capitalized, albeit modestly so. For those worried about regulatory rollbacks that decrease bank …) can substantially improve bank safety, at a level that may well rival the improvements from post-crisis regulation and (2 …
Persistent link: https://www.econbiz.de/10012897784
In this study, we benchmarked the crisis resolution frameworks of the Member States of the West African Monetary Zone (WAMZ) with the Financial Stability Board's Key Attributes (KAs) of effective resolution regime for financial institutions, using survey-based methodology. Questionnaires,...
Persistent link: https://www.econbiz.de/10013342792
We show that market discipline, defined as the extent to which firm specific risk characteristics are re ected in market prices, eroded during the recent financial crisis in 2008. We design a novel test of changes in market discipline based on the relation between firm specific risk...
Persistent link: https://www.econbiz.de/10010226557
Persistent link: https://www.econbiz.de/10009384437
sovereign default -- a de facto bailout. Consistent with this, the likelihood a defaulting sovereign is granted an IMF loan is …
Persistent link: https://www.econbiz.de/10012838768