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Rebuilding Banking Law: Banks as Public Utilities

Harvard Corporate Governance

Normal 0 false false false EN-US X-NONE AR-SA The unexpected failure of several major banks earlier this year has sparked interest in Washington in financial reform. More systemic reform ideas are also circulating, including fundamental changes to bank governance and government regulation and supervision. more…)

Banking 210
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Banking and Antitrust

Harvard Corporate Governance

bank regulation, as currently practiced. While banks are not technically exempt from antitrust enforcement, they are generally seen as inhabiting an alternative regulatory universe that is governed by principles and prioritizes substantive goals different from antitrust’s traditional competition-related concerns. banking sector.

Banking 129
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Banking Crises in Historical Perspective

Harvard Corporate Governance

The survey paper is organized around three main lessons learned about banking crises: the importance of leverage as a precursor to crises, the large and negative real impact of crises on various sectors of the economy, and that government and central bank intervention has historically ameliorated these effects. more…)

Banking 244
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Accounting for Bank Failure

Harvard Corporate Governance

Could better accounting rules have saved Silicon Valley Bank (SVB)? On the other hand, greater accounting transparency can unnecessarily cause bank depositors to panic at the first sign of trouble, threatening the stability of the banking system. The answer is a resounding maybe.

Banking 246
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The Credit Suisse Collapse and the Regulation of Banking

Harvard Corporate Governance

Related research from the Program on Corporate Governance includes Self-Fulfilling Credit Market Freezes by Lucian Bebchuk and Itay Goldstein. Credit Suisse, one of the world’s largest 30 banks with assets exceeding $500 billion, melted down earlier this month. ” SNB also pledged to provide CS with liquidity if necessary.

Banking 279
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The March 2023 Bank Interventions in Long-Run Context – Silicon Valley Bank and Beyond

Harvard Corporate Governance

In March 2023, the failure of Silicon Valley Bank (SVB) shocked global financial markets. In many ways, the SVB failure was a classic bank run, with details that appear drawn from the 19 th century rather than the 21 st. This post is based on their recent paper.

Banking 209
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Know Your Customer: Informed Trading by Banks

Harvard Corporate Governance

Since the implementation of the Glass-Steagall Banking Act of 1933 concerns about combined banking operations, i.e., commercial and investment banking within the same universal bank, faded. This study aims to demystify information transmission within universal banking systems.

Banking 234