We explore extended liability for bank shareholders as a method for mitigating moral hazard in insured banks. The … dominant approach to maintaining financial stability employs piecemeal regulations concerning specific bank behaviors; we …

' tightening on bank probabilities of default is positive albeit statistically insignificant, suggesting that risk-taking may crowd …

Scholars and regulators often maintain that extended shareholder liability reduces bank risk-taking. Prior to the Great … Depression, double liability on bank shareholders was the predominant institutional framework aimed to constrain moral hazard. We … examine whether increased shareholder liability effectively moderated bank risk-taking. We find no evidence that double …

gambling for resurrection, the risk-taking is driven by large and less profitable banks. The net impact on bank probabilities …