Search Results
Journal Article
Post-resolution treatment of depositors at failed banks: implications for the severity of banking crises, systemic risk, and too big to fail
Losses from bank failures have significant adverse implications for bank stakeholders, as well as for the macroeconomy. This article examines the potential sources of such losses, in particular the losses that may occur after the date a bank is failed, and makes recommendations on how to minimize these losses.
Newsletter
Reforming deposit insurance--once again
Working Paper
A proposal for efficiently resolving out-of-the-money swap positions at large insolvent banks
Recent evidence suggests that bank regulators appear to be able to resolve insolvent large banks efficiently without either protecting uninsured deposits through invoking "too-big-to-fail" or causing serious harm to other banks or financial markets. But resolving swap positions at insolvent banks, particularly a bank's out-of-the-money positions, has received less attention. The FDIC can now either repudiate these contracts and treat the in-the-money counterparties as at-risk general creditors or transfer the contracts to a solvent bank. Both options have major drawbacks. Terminating ...
Working Paper
Capital in banking: past, present and future
Journal Article
A comparison of U.S. corporate and bank insolvency resolution
In the U.S., the insolvency resolution of most corporations is governed by the federal bankruptcy code and is administered by special bankruptcy courts. Most large corporate bankruptcies are resolved under Chapter 11 reorganization proceedings. However, commercial bank insolvencies are governed by the Federal Deposit Insurance Act and are administered by the FDIC. These two resolution processes?corporate bankruptcy and bank receiverships?differ in a number of significant ways, including the type of proceeding (judicial versus administrative); the rights of managers, stockholders, and ...
Conference Paper
Implementing early intervention
Working Paper
Are some banks too large to fail? Myth and reality
Journal Article
A note on the increase in noninsured commercial banks