Tobias Adrian, Federal Reserve Bank of New York
"Financial Stability Monitoring"
On July 16, 2013, Tobias Adrian, Vice President and Head of the Capital Markets Function of the Federal Reserve Bank of New York, talked about Financial Stability Monitoring ("A Framework to Monitor Systemic Risk") during an IMFS Working Lunch.
David Kershaw and Tom Kirchmaier, London School of Economics
"Shareholder Empowerment and Bank Bailouts"
On June 18, 2013, Prof. David Kershaw, London School of Economics, Department of Law, and Dr. Thomas Kirchmaier, Manchester Business School and London School of Economics, Financial Markets Group, discussed "Shareholder Empowerment and Bank Bailouts" during an IMFS Working Lunch. Based on: Ferreira, Daniel, Kershaw, David, Kirchmaier, Tom and Schuster, Edmund-Philipp, Shareholder Empowerment and Bank Bailouts (November 2, 2012), ECGI - Finance Working Paper No. 345/2013
We propose a management insulation index based on banks' charter and by-law provisions and on the provisions of the applicable state corporate law that make it difficult for shareholders to oust a bank’s management. We show that banks in which managers were more insulated from shareholders in 2003 were roughly 18 to 26 percentage points less likely to be bailed out in 2008/09. We also find that banks in which the management insulation index was reduced between 2003 and 2006 were more likely to be bailed out. We discuss alternative interpretations of the evidence. The evidence is mostly consistent with the hypothesis that banks in which shareholders were more empowered performed poorly during the crisis.
The presentation can be downloaded here.
Charles M. Kahn, University of Illinois
"Liquidity - A View of How out Theories are Changing"
On March 18, 2013 Charles M. Kahn, Bailey Memorial Chair Professor, Department of Finance, University of Illinois talked about "Liquidity - A View of How our Theories are Changing" during an IMFS Working Lunch.