Deregulation, Market Structure, and the Evolution of U.S. Banking

The authors thank Camelia Kuhnen (the editor), the associate editor, and two anonymous referees for comments that significantly improved the paper; and Treb Allen, Robert Avery, Allen Berger, Bo Bian, Gianni De Nicolò, Andrew Detzel, Christine Dobridge, Alexander Dyck, Mark Egan, Michael Gibson, Yadav Gopalan, Harrison Hong, Kilian Huber, Stephan Luck, Phuong-Anh Nguyen, George Pennacchi, Manju Puri, Phil Strahan, Adi Sunderam, Teng Wang, Toni Whited, seminar participants at the Boston Fed, Carnegie Mellon, Chapman University, Fed Board, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Hong Kong University of Science and Technology, Kansas City Fed, National University of Singapore, Office of Financial Research, Penn State, Securities Exchange Commission, University of Houston, and Université Laval, and participants at the SGE Meetings, the UBC Winter Finance Conference, the Risk Management and Financial Innovation Conference: In Memory of Peter Christoffersen, the FIFI Conference, the Front Range Finance Seminar, the IDC Herzliya Conference, the Paris December Finance Meeting, the NFA Conference, the Federal Reserve Community Banking in the 21st Century Research and Policy Conference, the Santiago Finance Workshop, and the EFA Meetings for helpful comments. This paper was previously titled “The Blessing and Curse of Deregulation.” Part of this research was conducted while Lewellen was an employee of Carnegie Mellon University and London Business School and while Karolyi was an employee of Carnegie Mellon University and the Office of the Comptroller of the Currency.