The debate over modernizing the financial structure is raising questions about the merits of modernizing the financial regulatory structure. Regulatory structure is important because an almost unavoidable feature of our current system of government is that Congress assigns multiple goals that...

This paper examines the properties of the X-inefficiencies in U.S. bank holding companies derived from both stochastic and linear programming frontiers. This examination allows the robustness of results across methods to be compared. While we find that calculated programming inefficiency scores...

Individual loans contain a bundle of risks including credit risk and interest rate risk. This paper focuses on the general issue of banks' management of these various risks in a model with costly loan monitoring and convex taxes. The results suggest that if the hedge is not subject to basis...