Risk Targeting and Policy Illusions—Evidence from the Announcement of the Volcker Rule
Published Online:17 Nov 2016https://doi.org/10.1287/mnsc.2016.2583
References
- (2010) Regulating Wall Street: The Dodd–Frank Act and the New Architecture of Global Finance (John Wiley & Sons, Hoboken, NJ).Crossref, Google Scholar
- (2015) Regulating consumer financial products: Evidence from credit cards. Quart. J. Econom. 130(1):111–164.Crossref, Google Scholar
- (1999) Bank loan loss provisions: A reexamination of capital management, earnings management and signaling effects. J. Accounting Econom. 28(1):1–25.Crossref, Google Scholar
- (2004) The Gramm-Leach-Bliley Act of 1999: Risk implications for the financial services industry. J. Financial Res. 27(3):435–446.Crossref, Google Scholar
- (2011) Essentials of the Dodd–Frank Act (John Wiley & Sons, Hoboken, NJ).Crossref, Google Scholar
- (1994) The underwriting experience of commercial bank affiliates prior to the Glass-Steagall Act: A reexamination of evidence for passage of the act. J. Banking Finance 18(2):351–395.Crossref, Google Scholar
- (1982) The impact of merger bids on the participating firms’ security holders. J. Finance 37(5):1209–1228.Crossref, Google Scholar
- (2000) The repeal of Glass-Steagall and the advent of broad banking. J. Econom. Perspect. 14(2):191–204.Crossref, Google Scholar
- (2004) Bank regulation and supervision: What works best? J. Financial Intermediation 13(2):205–248.Crossref, Google Scholar
- (2014) Financial accounting in the banking industry: A review of the empirical literature. J. Accounting Econom. 58(2):339–383.Crossref, Google Scholar
- (2002) Earnings management to avoid earnings declines across public and privately held banks. Accounting Rev. 77(3):547–570.Crossref, Google Scholar
- (1994) Universal banking. J. Econom. Perspect. 8(3):121–143.Crossref, Google Scholar
- (2013) The effect of TARP on bank risk-taking. J. Financial Stability 9(4):790–803.Crossref, Google Scholar
- Board of Governors of the Federal Reserve System (2014) Press release, December 18, https://www.federalreserve.gov/newsevents/press/bcreg/20141218a.htm.Google Scholar
- (1998) Moral hazard under commercial and universal banking. J. Money, Credit Banking 30(3):426–468.Crossref, Google Scholar
- (2011) Consumer financial protection. J. Econom. Perspect. 25(1):91–114.Crossref, Google Scholar
- CCH Attorney-Editor (2010) Wall Street Reform and Consumer Protection Act of 2010: Law, Explanation and Analysis (Wolters Kluwer Law & Business, New York).Google Scholar
- (2016) The impact of Volcker Rule on bank profits and default probabilities. Working paper, University of Michigan, Ann Arbor.Google Scholar
- (2002) Bank performance around the introduction of a section 20 subsidiary. J. Finance 57(1):501–521.Crossref, Google Scholar
- (2012) Goldman moves to comply with Volcker Rule. New York Times (May 10), http://dealbook.nytimes.com/2012/05/10/goldman-moves-to-comply-with-volcker-rule/.Google Scholar
- (2012) Bank bailouts and moral hazard: Evidence from Germany. Rev. Financial Stud. 25(8):2343–2380.Crossref, Google Scholar
- DavisPolk (2010) Summary of the Dodd–Frank Wall Street Reform and Consumer Protection Act. White paper, Davis Polk & Wardwell, New York.Google Scholar
- (2010) Back to the basics in banking? A micro-analysis of banking system stability. J. Financial Intermediation 19(3):387–417.Crossref, Google Scholar
- (2001) Product mix and earnings volatility at commercial banks: Evidence from a degree of total leverage model. J. Financial Intermediation 10(1):54–84.Crossref, Google Scholar
- (2014) Safer ratios, riskier portfolios: Banks’ response to government aid. J. Financial Econom. 113(1):1–28.Crossref, Google Scholar
- Economist, The (2012) The Dodd–Frank act: Too big not to fail. (February 18), http://www.economist.com/node/21547784.Google Scholar
- (1993) Common risk factors in the returns on stocks and bonds. J. Financial Econom. 33(1):3–56.Crossref, Google Scholar
- (1991) The postmerger share-price performance of acquiring firms. J. Financial Econom. 29(1):81–96.Crossref, Google Scholar
- (2007) Regulating financial conglomerates. J. Financial Intermediation 16(4):479–514.Crossref, Google Scholar
- (1998) Risk management, capital budgeting, and capital structure policy for financial institutions: An integrated approach. J. Financial Econom. 47(1):55–82.Crossref, Google Scholar
- (1993) Risk management: Coordinating corporate investment and financing policies. J. Finance 48(5):1629–1658.Crossref, Google Scholar
- (2009) On the riskiness of universal banking: Evidence from banks in the investment banking business pre- and post-GLBA. J. Money, Credit Banking 41(8):1649–1669.Crossref, Google Scholar
- (2015) Does the geographic expansion of bank assets reduce risk? NBER Working Paper 20758, National Bureau of Economic Research, Cambridge, MA.Google Scholar
- (2014) The impact of public guarantees on bank risk-taking: Evidence from a natural experiment. Rev. Finance 18(2):457–488.Crossref, Google Scholar
- (2014) Wishful thinking or effective threat? Tightening bank resolution regimes and bank risk-taking. J. Financial Stability 15:264–281.Crossref, Google Scholar
- (2015) Between capture and discretion—The determinants of distressed bank treatment and expected government support. Working paper, Goethe University, Frankfurt, Germany.Google Scholar
- (1994) Universal banking and firm risk-taking. J. Banking Finance 18(2):307–323.Crossref, Google Scholar
- (2005) Bank trading risk and systemic risk. NBER Working Paper 11037, National Bureau of Economic Research, Cambridge, MA.Crossref, Google Scholar
- (2007) Is universal banking justified? Evidence from bank underwriting of corporate bonds in Japan. J. Financial Econom. 84(1):142–186.Crossref, Google Scholar
- (2013) How does bank trading activity affect performance? An investigation before and after the financial crisis. Working paper, University of Western Ontario, Ontario.Google Scholar
- (1994) Is the Glass-Steagall Act justified? A study of the U.S. experience with universal banking before 1933. Amer. Econom. Rev. 84(4):810–832.Google Scholar
- (1997) Organization structure and credibility: Evidence from commercial bank securities activities before the Glass-Steagall Act. J. Monetary Econom. 39(3):475–516.Crossref, Google Scholar
- (2011) Financial regulatory reform: Challenges ahead. Amer. Econom. Rev. 101(3):242–246.Crossref, Google Scholar
- (2007) Is there a diversification discount in financial conglomerates? J. Financial Econom. 85(2):331–367.Crossref, Google Scholar
- (2009) Bank governance, regulation and risk taking. J. Financial Econom. 93(2):259–275.Crossref, Google Scholar
- (1994) The long-term default performance of bank underwritten security issues. J. Banking Finance 18(2):397–418.Crossref, Google Scholar
- (2010) Large Banks and the Volcker Rule (John Wiley & Sons, Hoboken, NJ), 181–212.Crossref, Google Scholar
- (2012) Citigroup to close prop trading desk. New York Times (January 27), http://dealbook.nytimes.com/2012/01/27/citigroup-to-close-prop-trading-desk/.Google Scholar
- (1952) Safety first and the holding of assets. Econometrica 20(3):431–449.Crossref, Google Scholar
- (1994) Universal Banking in the United States: What Could We Gain? What Could We Lose? (Oxford University Press, Oxford, UK).Google Scholar
- (2013) Financial sector reform after the crisis: Has anything happened? Discussion Paper 9502, Centre for Economic Policy Research, London, http://www.voxeu.org/sites/default/files/file/dp9502.pdf.Google Scholar
- (2009) Do financial conglomerates create or destroy economic value? J. Financial Intermediation 18(2):193–216.Crossref, Google Scholar
- (2004) Diversification in banking: Is noninterest income the answer? J. Money, Credit Banking 36(5):853–882.Crossref, Google Scholar
- (2006) A portfolio view of banking with interest and noninterest activities. J. Money, Credit Banking 38(5):1351–1361.Crossref, Google Scholar
- (2006) The dark side of diversification: The case of U.S. financial holding companies. J. Banking Finance 30(8):2131–2161.Crossref, Google Scholar
- (2012) The economic consequences of the Volcker Rule. White paper, Center for Capital Markets and Competitiveness, Washington, DC, http://www.centerforcapitalmarkets.com/wp-content/uploads/2010/04/17612_CCMC-Volcker-RuleFINAL.pdf.Google Scholar
- (2015) Volcker bank-risk rule set to start with little fanfare. Wall Street Journal (July 21), http://www.wsj.com/articles/volcker-bank-risk-rule-set-to-start-with-little-fanfare-1437517061.Google Scholar
- (2007) The financial services modernization act: Evolution or revolution? J. Econom. Bus. 59(4):313–339.Crossref, Google Scholar

