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McDonald, Robert L.; Paulson, Anna - National Bureau of Economic Research (NBER) - 2015

The near-failure on September 16, 2008, of American International Group (AIG) was an iconic moment in the financial crisis. Two large bets on real estate made with funding that was vulnerable to bank-run like behavior on the part of funders pushed AIG to the brink of bankruptcy. AIG used...

Persistent link: https://www.econbiz.de/10011262909

Deposit Insurance and Orderly Liquidation without Commitment: Can we Sleep Well?

Cooper, Russell; Kempf, Hubert - National Bureau of Economic Research (NBER) - 2013

This paper assess the affects of the orderly liquidation of a failing bank and the ex post provision of deposit insurance on the prospect of bank runs. Assuming that the public institutions in charge of these policies lack commitment power, these interventions, both individually and jointly, are...

Persistent link: https://www.econbiz.de/10010821978

LEADS on Macroeconomic Risks to and from the Household Sector

Parker, Jonathan A. - National Bureau of Economic Research (NBER) - 2012

of information on household exposures to macroeconomic risk factors - can potentially lead to better macroeconomic …

Persistent link: https://www.econbiz.de/10010969235

Counterparty Risk and the Establishment of the New York Stock Exchange Clearinghouse

Weidenmier, Marc; Bernstein, Asaf; Hughson, Eric - National Bureau of Economic Research (NBER) - 2014

Heightened counterparty risk during the recent financial crisis has raised questions about the role clearinghouses play … in global financial stability. Empirical identification of the effect of centralized clearing on counterparty risk is … after the establishment of clearing. We also show that at least ½ of the average reduction in counterparty risk on the NYSE …

Persistent link: https://www.econbiz.de/10010969403

Banks, Liquidity Management and Monetary Policy

Bianchi, Javier; Bigio, Saki - National Bureau of Economic Research (NBER) - 2014

random and therefore create liquidity risk, which in turn determines the supply of credit and the money multiplier. We study … profiting from lending and incurring greater liquidity risk. We calibrate our model to study quantitatively why banks have …

Persistent link: https://www.econbiz.de/10010950643

The Effects of Reconstruction Finance Corporation Assistance on Michigan's Banks' Survival in the 1930s

Calomiris, Charles W.; Weidenmier, Marc; Mason, Joseph R.; … - National Bureau of Economic Research (NBER) - 2012

assistance that are not directly related to failure risk) for analyzing the effects of RFC assistance on bank survival. We find … assistance not only contributed to loan supply by reducing failure risk; conditional on bank survival, RFC assistance is …

Persistent link: https://www.econbiz.de/10010950800

Moral and Social Constraints to Strategic Default on Mortgages

Guiso, Luigi; Sapienza, Paola; Zingales, Luigi - National Bureau of Economic Research (NBER) - 2009

We use survey data to study American households' propensity to default when the value of their mortgage exceeds the value of their house even if they can afford to pay their mortgage (strategic default). We find that 26% of the existing defaults are strategic. We also find that no household...

Persistent link: https://www.econbiz.de/10005039683

Systemic Risk and the Refinancing Ratchet Effect

Lo, Andrew W.; merton, robert c.; Khandani, Amir E. - National Bureau of Economic Research (NBER) - 2009

, and near-frictionless refinancing opportunities---led to vastly increased systemic risk in the financial system …

Persistent link: https://www.econbiz.de/10005089229

When Everyone Runs for the Exit

Pedersen, Lasse Heje - National Bureau of Economic Research (NBER) - 2009

trades, why they run, what determines the risk, whether to return to the theater or trade when the dust settles, and how much … to pay for assets (or tickets) in light of this risk. These theoretical considerations shed light on the recent global …

Persistent link: https://www.econbiz.de/10005108391

Why Did Some Banks Perform Better During the Credit Crisis? A Cross-Country Study of the Impact of Governance and Regulation

Beltratti, Andrea; Stulz, René M. - National Bureau of Economic Research (NBER) - 2009

Though overall bank performance from July 2007 to December 2008 was the worst since at least the Great Depression, there is significant variation in the cross-section of stock returns of large banks across the world during that period. We use this variation to evaluate the importance of factors...

Persistent link: https://www.econbiz.de/10005061603