Working Paper

01 January 2015

Decision-Making during the Crisis: Why did the Treasury let Commercial Banks fail?

Limited attention has been paid to the comparative fate of banks benefiting from TARP Capital Purchase Program (CPP) funding and less fortunate banks subject to FDIC resolution. We address this omission by investigating two core...

Ettore Croci | Gérard Hertig | Eric Nowak
01 December 2015

Why Don?t All Banks Practice Regulatory Arbitrage? Evidence from Usage of Trust Preferred Securities

We investigate why only some banks use regulatory arbitrage. We predict that banks wanting to be riskier than allowed by capital regulations (constrained banks) use regulatory arbitrage while others do not. We find support for this...

Nicole Boyson | René Stulz
01 June 2016

Bank Governance

According to a common narrative, in addition to inadequate capital and liquidity, the failure of banks in the financial crisis also reflected their poor governance. By governance we mean broadly the oversight that comes from banks?...

John Armour | Dan Awrey | Paul Davies | Luca Enriques | Jeffrey Gordon | Colin Mayer | Jennifer Payne