Lunch Anyone? Volatility on the Tokyo Stock Exchange around the Lunch Break on May 23, 2013, and Stock Market Circuit Breakers
Stock market circuit breakers halt trading activity on a single stock or an entire exchange if a sudden large price move occurs.
A New Idea on Bank Capital
How does any firm decide on its capital structure – how much equity (capital) to use, how much debt?
Parting Reflections on the Series on Large and Complex Banks
The motivation for the Economic Policy Review series was to understand better the behavior of large and complex banks, and we have covered a lot of ground toward that end.
Why Large Bank Failures Are So Messy and What to Do about It?
If the Lehman Brothers failure proved anything, it was that large, complex bank failures are messy; they destroy value and can destabilize financial markets.
Walter Bagehot is always good for an epigraph. And this epigraph is a good one: going well beyond traders.
The Failure Resolution of Lehman Brothers
The bankruptcy of Lehman Brothers and its 209 registered subsidiaries was one of the largest and most complex in history, with more than $1 trillion of creditor claims in the United States alone, four bodies of applicable U.S. laws, and insolvency proceedings that involved over eighty international legal jurisdictions.
Resolution of Failed Banks
During the recent crisis, some of the largest and most prominent financial institutions failed or nearly failed, requiring extraordinary intervention from regulators, such as extended access to lender-of-last-resort facilities, debt and deposit guarantees, and injection of capital to mitigate systemic risk.
Mixing and Matching Collateral in Dealer Banks
The failure or near-collapse of some of the largest dealer banks on Wall Street in 2008 highlighted the profound complexity of the industry.