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Working Paper
Too-Big-to-Fail before the Fed
?Too-big-to-fail? is consistent with policies followed by private bank clearing houses during financial crises in the U.S. National Banking Era prior to the existence of the Federal Reserve System. Private bank clearing houses provided emergency lending to member banks during financial crises. This behavior strongly suggests that ?too-big-to-fail? is not the problem causing modern crises. Rather, it is a reasonable response to the threat posed to large banks by the vulnerability of short-term debt to runs.
Journal Article
Private clearinghouses and the origins of central banking
Conference Paper
The paradox of loan sales
Conference Paper
Pricing bank loans
Working Paper
Banks and derivatives
Working Paper
Eat or be eaten: a theory of mergers and firm size
We propose a theory of mergers that combines managerial merger motives and a regime shift that may lead to some value- increasing merger opportunities. Anticipation of the regime shift can lead to mergers, either for defensive or positioning reasons. Defensive mergers occur when managers acquire other firms to avoid being acquired themselves. Mergers may also allow a firm to position itself as a more attractive takeover target and earn a takeover premium. The identity of acquirers and targets and the profitability of acquisitions depend, among other factors, on the distribution of firm sizes ...
Conference Paper
Overcapacity and exit from banking
Journal Article
Forecasting with the Index of Leading Indicators