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The Credit Suisse Collapse and the Regulation of Banking

Harvard Corporate Governance

Credit Suisse, one of the world’s largest 30 banks with assets exceeding $500 billion, melted down earlier this month. How this collapse quickly unfolded raises serious questions about the regulatory actions preceding it and the future of banking regulation. ” SNB also pledged to provide CS with liquidity if necessary.

Banking 279
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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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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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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
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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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Sports Investment Banking: How to Win the Super Bowl and the World Cup in the Same Year

Brian DeChesare

This partially explains why sports investment banking has become a hot field, with JP Morgan and Goldman Sachs launching their own sports coverage groups. For a long time, sports teams and franchises were not worth that much, so banks rarely put their “A-Teams” on these deals. What is Sports Investment Banking?

Banking 105
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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 200