Paraphrasing a famous Supreme Court opinion: “I know bank complexity when I see it.”
In yesterday’s post, our colleagues discussed the historic changes in financial sector size.
Building upon previous posts in this series that discussed individual banks, we examine the historical growth of the entire financial sector, relative to the rest of the economy.
In the previous post, João Santos showed that the largest banks benefit from a bigger discount in the bond market relative to the largest nonbank financial and nonfinancial issuers.
Yesterday’s post presented evidence on a possible upside of very large banks, namely, lower costs.
Despite recent financial reforms, there is still widespread concern that large banking firms remain “too big to fail.”
The chorus of criticism levied against mega-banks has, in some cases, outrun the research needed to back the criticism.
The rise in the ten-year Treasury rate last summer was perhaps the most dramatic since the 2003 bond market sell-off.
The relative merits of algorithmic and high-frequency trading are most often discussed in the context of equity markets.
This morning, the New York Fed released a new set of charts measuring various dimensions of the labor market.