that are driven by out of equilibrium behavior, such as clustered volatility and fat tails. We argue that traditional … banks …

bank, a regulator should ideally be able to prove beyond a reasonable doubt that banks classified as systemically risky … banks. We conclude that it will be a considerable challenge to develop a riskometer that is both sound and reliable enough …

significantly increases systemic risk. In particular, herding in real estate loans by big banks contribute more to systemic risk. We …

. Poor lending decisions allowed banks to transfer risk to the fund, resulting in their capturing returns on performing loans …, activity, and leverage were collected on the largest seven national banks, which control 87% of the capital in the banking …

results indicate that TARP can help reduce TARP banks’ risk-taking. And this effect becomes less significant in a shorter … TARP effects on risk-taking. After receiving TARP funding, early repayment TARP banks reduce their risk-taking, but late … repayment TARP banks increase their risk-taking. These results are robust to different tests. We also investigate the TARP …

In this paper we study systemic risk for the US and Europe. We show that banks' exposures to common risk factors are … crucial for systemic risk. We come to this conclusion by first showing that relations between US and European banks are … smaller than within each region. We then show that European banks react more strongly to the onset of the financial crisis …

regulatory balance sheet data for U.S. commercial banks and repo market data for broker-dealers. Even for moderate shocks in … normal times, fire-sale externalities can be substantial. For commercial banks, a 1 percent exogenous shock to assets in 2013 … but shows a notable increase starting in 2004, ahead of many other systemic risk indicators. Although the largest banks …

We take issue with claims that the funding mix of banks, which makes them fragile and crisis-prone, is efficient … that banks' distress and default cause, such claims are invalid because banks have multiple small creditors and are unable … funding mix entails costs to society, such regulation actually helps create useful commitment for banks to avoid the …