Working Paper
Did FDICIA enhance market discipline on community banks? a look at evidence from the jumbo-CD market
King, Thomas B.; Vaughan, Mark D.; Meyer, Andrew P.; Hall, John R. (2002)
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) directed the FDIC to resolve bank failures in the least costly manner, shifting more of the failure-resolution burden to jumbo-CD holders. We examine the sensitivity of jumbo-CD yields and runoffs to failure risk before and after FDICIA. We also examine the economic significance of estimated risk sensitivities before and after the Act, looking at the implied impact of risk on bank funding costs and profits. The evidence indicates that yields and runoff were sensitive to risk before and after FDICIA, but that this ...
Supervisory Policy Analysis Working Papers , Paper 2002-04

Working Paper
Do jumbo-CD holders care about anything?
King, Thomas B.; Vaughan, Mark D.; Meyer, Andrew P.; Hall, John R. (2002)
Uninsured deposits represent a theoretically appealing but relatively untested alternative to subordinated debt for incorporating market discipline into banking supervision. To make the deposit market a useful supervisory tool, it is necessary to know what types of risk are priced by depositors and in what proportions. Using a clustering technique to select from among a large set of potential regressors, as well as a carefully chosen set of control variables, we attempt to determine the types of risk that cause uninsured depositors to react in both the price and quantity dimensions. As a ...
Supervisory Policy Analysis Working Papers , Paper 2002-05

Journal Article
Jumbo CDs play tiny role in policing risky banks ... so far
Vaughan, Mark D.; Meyer, Andrew P.; King, Thomas B.; Hall, John R. (2002-07)
Reforms enacted after the S&L crisis have yet to persuade holders of jumbo CDs to monitor their banks' risky practices.
The Regional Economist , Issue Jul. , Pages 12-13

Working Paper
What can bank supervisors learn from equity markets? a comparison of the factors affecting market-based risk measures and BOPEC scores
King, Thomas B.; Vaughan, Mark D.; Meyer, Andrew P.; Hall, John R. (2002)
Much recent academic attention has focused on the relative ability of markets and bank supervisors to assess the risk of depository institutions. We add to that literature by comparing the factors influencing bank holding company risk, as gauged by equity markets, with the factors influencing the confidential BOPEC scores, as awarded by bank supervisors. Specifically, we regress stock market measures of holding company risk and BOPEC scores on a host of on- and off-balance sheet risk measures taken from the Federal Reserve*s Consolidated Financial Statements for Bank Holding Companies (FR ...
Supervisory Policy Analysis Working Papers , Paper 2002-06

Journal Article
Community ties: does \\"relationship lending\\" protect small banks when the local economy stumbles?
Yeager, Timothy J.; Hall, John R. (2002-04)
The cover story examines why small banks aren't usually thrown for a loop when the local economy has a rough ride
The Regional Economist , Issue Apr. , Pages 4-9