Search Results
Working Paper
Underlying determinants of closed-bank resolution costs
An analysis of the issues surrounding bank resolution costs, looking at failures from 1986 to 1992 and including proxies for fraud, off-balance-sheet risk, brokered deposits, and both regional and size effects. Evidence suggests there was a significant lag between the realization and recognition of losses on bank assets, and that regulators may have practiced forbearance.
Conference Paper
Depositor preference legislation and failed banks' resolution costs
Working Paper
Tobin's Q, investment, and endogenous adjustment of financial structure
An analysis of a q model of investment in which financial structure affects firm value, using a perfect foresight model of general equilibrium that includes a debt-related agency cost; uses the comparative statics and dynamics of changing the corporate tax rate as an illustration.
Journal Article
Why intervention rarely works
Foreign-exchange-market intervention is generally ineffective when undertaken independent of monetary policy. But when undertaken as a goal of monetary policy, exchange-rate management can compromise price stability. This Economic Commentary explains the difficulties of implementing an intervention policy.
Working Paper
Depositor preference and the cost of capital for insured depository institutions
An analysis of the impact of depositor preference laws on the cost of debt capital for banks and on the value of FDIC deposit guarantees. The authors find that depositor preference laws increase the value of uninsured deposit claims and reduce the size of the FDIC subsidy, but will not affect the total value of banks and thrifts unless deposit insurance is mispriced.
Journal Article
SAIF policy options
An outline of three possible options for capitalizing the Savings Association Insurance Fund, which is in danger of suffering a huge premium disadvantage compared to banks insured by the Bank Insurance Fund, and a recommendation that any solution should first consider the policy objectives for maintaining separately chartered housing finance lenders.
Working Paper
More on the differences between reported and actual U.S. central bank foreign exchange intervention
An analysis of the differential impacts of reported and actual U.S. foreign exchange intervention on the mean and conditional variance of the Deutschemark-to-dollar and yen-to-dollar exchange rates. For part of the sample period, the impact of intervention on the variance of the exchange rates is shown to depend on whether the intervention was reported.
Conference Paper
Capital requirements and optimal bank portfolios: a reexamination
Working Paper
Deposit insurance and the cost of capital
The impacts of deposit insurance and forbearance on the costs and value of uninsured deposits and equity capital are shown under three regimes.
Working Paper
Central bank intervention and overnight uncovered interest rate parity
This paper considers the impact of U.S. and German central bank intervention on the risk premium in forward foreign exchange markets.