Is there any need to “clean” up a banking system in the midst of a crisis, by closing or recapitalizing weak banks and …

in the banking sector, dividend payouts can shift the relative value of stakeholders' claims across firms. Through this … dividends and inefficient recapitalization relative to the efficient policy that maximizes banking sector equity. We compare the …

important for thinking about policies on transparency, on capital buffers and other regulatory issues concerning banking and …

welfare. We propose a macro-economic model in which a regulator faces the following trade-off. On the one hand, banking …

(including their own financial statements), when the banking industry is weaker. We further hypothesize that this option of … underreporting charge-offs and provisions provides banks with incentives, when the banking industry is weaker, to cluster more, or to …-offs and lower provisions for loan losses, after controlling for their other determinants, when the banking industry is weaker …

shadow banking system, and destabilizing defaults and near-defaults of major financial institutions. In response, the Federal …