. The focus is on the conflicts among bank shareholders, managers, and creditors (e.g., regulators, deposit insurer …, taxpayers, depositors). This paper finds activism may generally be a destabilizing force, increasing bank risk-taking, but … creating market value for shareholders, and leaving operating returns unchanged, consistent with the empirical dominance of the …

over management's portfolio selection. The paper demonstrates that rational shareholders - that anticipate these endogenous …