Bank lending to LBO's: risks and supervisory response
An examination of the risks associated with leveraged buyouts and a discussion of the current response of federal bank regulators to the increased participation of banks and bank holding companies in funding LBOs, stressing the need for appropriate internal controls.
The causes and consequences of leveraged buyouts
Buyouts and bondholders
Agency problems in public firms: evidence from corporate jets in leveraged buyouts
This paper uses rich, new data to examine the fleets of corporate jets operated by both publicly traded and privately held firms. In the cross-section, firms owned by private equity funds average jet fleets at least 40 percent smaller than observably similar publicly-traded firms. Similar fleet reductions are observed within firms that go private in leveraged buyouts. I discuss assumptions under which comparisons across and within firms provide estimates of lower and upper bounds on the average treatment effect of taking a firm from public to private in a leveraged buyout. Both censored and ...
Leveraging opportunities to promote community reinvestment
The Community Reinvestment Act (CRA) is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. The CRA performance impacts banks and the communities they serve. CRA requirements are embedded in the chartering of financial institutions; and CRA performance ratings are considered in the approval, denial, or conditioning of applications for such activities as branching, consolidation, or acquisitions. Therefore, CRA provides a powerful ...