Cross-border banking, while having the potential for a more efficient financial sector, also creates potential challenges for bank supervisors and regulators. It requires cooperation by regulatory authorities across jurisdictions and a clear delineation of authority and responsibility. That...

The causes of the financial crisis of 2007-0X are many and varied. Indeed, the crisis may be viewed as the product of a perfect storm. This paper identifies the major culprits of the U.S. crisis and enumerates their more important sins. The culprits include central bankers, commercial bankers,...

Bank failures are often perceived to be more costly to the economy than the failure of other firms of comparable size and to generate widespread public fear. As a result, preventing bank failures is a major public policy concern in all countries. Unfortunately, most public policy strategies...

In the U.S., as in most countries with well-developed securities markets, derivative securities enjoy special protections under insolvency resolution laws. Most creditors are quot;stayedquot; from enforcing their rights while a firm is in bankruptcy. However, many derivatives contracts are...

Improving the Economic Condition of society is the long-run goal of economics, although few academic economists or financial economists get involved in public policy activities. In large measure, this reflects the strong bias the profession has in favor of quantitative and theoretical skills and...

Losses may accrue to depositors at insolvent banks both at and after the time of official resolution. Losses at resolution occur because of poor closure rules and regulatory forbearance. Losses after resolution occur if depositors' access to their claims is delayed or frozen. While the sources...

Much concern has recently been expressed that both large, procyclical changes in bank assets and quot;credit crunchesquot; caused by banks' reluctance to expand loans during recessions contribute to economic instability. These effects are difficult to explain using the standard textbook model of...

In this article we examine whether the federal safety net is viewed by the market as being extended beyond de-jure deposits to other bank debt and even the debt of bank holding companies (BHCs). We extend previous research by focusing on the post-FDICIA period and by also examining the...

This paper focuses on the strong links between macroeconomic stability and bank soundness and argues that if the first is not achieved the second is not likely either with serious adverse consequences. Instability in banking is most often the result of actions by governments directed at the...

This paper extends the literature on bank capital structure by modeling capital structure as a function of important public policy and bank regulatory characteristics of the home country, as well as of bank specific variables, country macro-economic conditions and country level financial...