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The Carrot and the Stick: Bank Bailouts and the Disciplining Role of Board Appointments

Harvard Corporate Governance

Normal 0 false false false false EN-GB X-NONE X-NONE Despite the well-publicized negative effect of bailouts on ex ante incentives, it is often practically infeasible for governments to avoid bailing out failing banks, especially if many banks fail together, i.e., in the presence of systemic risk. more…)

Banking 183
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Deregulation and Board Policies: Evidence from Performance Measures Used in Bank CEO Turnover Decisions

Harvard Corporate Governance

The banking industry has undergone substantial changes since the late 1970s, largely due to deregulation and rapid market developments. Over that period, banks’ growth opportunities expanded, and banks entered new markets, both geographic and product. Cunat and Guadalupe 2009; DeYoung et al.

Banking 197
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Bulge Bracket Banks: 2024 Edition

Brian DeChesare

I never expected to revisit the topic of bulge bracket banks so quickly because the full list changes slowly, and we updated it a few years ago. What is a “Bulge Bracket Bank”? The name “bulge bracket” (BB) comes from the prospectus for an IPO or debt issuance, which lists all the banks underwriting the deal.

Banking 104
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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Brian DeChesare

Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity.

Equity 101
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Equity Bancshares, Inc. Adds to Missouri Franchise, Will Acquire Bank of Kirksville

Benzinga

06, 2023 (GLOBE NEWSWIRE) -- Equity Bancshares, Inc. NYSE: EQBK ) ("Equity" or the "Company"), the Wichita-based holding company of Equity Bank, announced today its entry into a definitive merger agreement with Rockhold Bancorp ("Rockhold"), the parent company of the Bank of Kirksville in Kirksville, Missouri.

Banking 40
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Solid Financial Reporting Can Help Attract Debt and Equity Financing

Machen McChesney

Timely, reliable reports can increase the odds that a bank will approve your company’s loan application and equity investors will provide capital. Lenders and investors will generally want to review your company’s financial statements before they give it money.

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Are Listed Banks Riskier Than Private Banks?

Reynolds Holding

In a recent paper , we examine whether listed bank holding companies (BHCs) that are small enough to stay private are riskier than private BHCs that are large enough to go public but have opted not to do so. The banking industry is highly competitive, which leads management to seek better financial results and invest in risky projects.

Banking 59