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Working Paper
Are some banks too large to fail? Myth and reality
Working Paper
Bank fragility: perception and historical evidence
Journal Article
Banking and currency crisis and systemic risk: lessons from recent events
Banking and currency crises have done severe economic damage in many countries in recent years. This article examines the causes and characteristics of these crises and the public policies intended to prevent them or mitigate their adverse consequences.
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 ...