The Subsidy Provided by the Federal Safety Net: Theory and Evidence

Journal of Financial Services Research

Volumn 16, Issue 2-3, 1999, Pages 125-145

  Kwast, Myron L ^a   Passmore, S Wayne ^a  

^a FEDERAL RESERVE BOARD   (United States)

Author keywords

Banking; Safety net; Subsidy

Indexed keywords

EID: 0033257668     PISSN: 09208550     EISSN: None     Source Type: Journal    
DOI: 10.1023/a:1008184207595     Document Type: Article

References (24)

1. Ambrose, Brent W., and Arthur Warga. "Implications of Privatization: The Costs to Fannie Mae and Freddie Mac." in Studies on Privatizing Fannie Mae and Freddie Mac. Washington, DC: Department of Housing and Urban Development, May 1996.
2. August, James D., Michael R. Grupe, Charles Luckett, and Samuel M. Slowinski. "Survey of Finance Companies, 1996." Federal Reserve Bulletin 83 (1997), 543-556.
3. Bankers Roundtable. "The Federal Safety Net - Subsidy Effects in and Outside of Banks." Occasional Paper No. 3, May 1997a.
4. Bankers Roundtable. "Deposit Insurance Reform in the Public Interest." Report of the Subcommittee and Working Group on Deposit Insurance Reform. Retail Issues and Deposit Insurance Committee, May 1997b.
5. Boyd, John H., and Mark Gertler. "Are Banks Dead? Or, Are the Reports Greatly Exaggerated?" Proceedings of a conference on Bank Structure and Competition. Federal Reserve Bank of Chicago, May 1994, 85-117.
6. Boyd, John H., S.L. Graham, and R.S. Hewitt. "Bank Holding Company Mergers with Nonbank Financial Firms: Effects on the Risk of Failure." Journal of Banking and Finance 17 (1993), 43-63.
7. Carey, Mark, Mitch Post, and Steven A. Sharpe. "Does Corporate Lending by Banks and Finance Companies Differ? Evidence on Specialization in Private Debt Contracting." Journal of Finance 53, no. 3 (1998), 845-878.
8. Carow, Kenneth A., and Glen A. Larsen, Jr. "The Effect of FDICIA Regulation on Bank Holding Companies." The Journal of Financial Research 20, no. 2 (1997), 159-174.
9. Elliehausen, Gregory. "The Cost of Bank Regulation: A Review of the Evidence." Washington, DC: Board of Governors of the Federal Reserve System, April 1997.
10. Ely, Bert. "Comment: Greenspan's Deposit Insurance Subsidy Argument Is Nonsense." The American Banker (1997), article 66.
11. Ettin, Edward C. "The Evolution of the North American Banking System." Paper prepared for presentation at the OECD Committee on Financial Markets. Board of Governors of the Federal Reserve System, Washington, DC, July 1994.
12. Furlong, Frederick. "Federal Subsidies in Banking: The Link to Financial Modernization." Federal Reserve Bank of San Francisco. Economic Letter no. 97-31 (1997).
13. Greenspan, Alan. Statement before the Subcommittee on Financial Institutions and Consumer Credit of the Committee on Banking and Financial Services, U.S. House of Representatives (February 13, 1997a).
14. Greenspan, Alan. Statement before the Subcommittee on Capital Markets, Securities and Government-Sponsored Enterprises of the Committee on Banking and Financial Services, U.S. House of Representatives (March 19, 1997b).
15. Helfer, Ricki. Statement before the Subcommittee on Capital Markets, Securities and Government-Sponsored Enterprises of the Committee on Banking and Financial Services, U.S. House of Representatives (March 5, 1997).
16. Kau, James B., and Donald C. Keenan. "An Option-Theoretic Model of Catastrophes Applied to Mortgage Insurance." The Journal of Risk and Insurance 63, no. 4 (1996), 639-656.
17. Kuester, Kathy, and Jim O'Brien. "Market-Based Deposit Insurance Premiums." Proceedings from a conference on Bank Structure and Competition. Federal Reserve Bank of Chicago, May 1990, pp. 62-95.
18. Kwast, Myron L. "The Impact of Underwriting and Dealing on Bank Returns and Risks." Journal of Banking and Finance 13 (1989), 101-125.
19. Kwast, Myron L., and S. Wayne Passmore. "The Subsidy Provided by the Federal Safety Net: Theory, Measurement and Containment." Washington, DC: Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System, 1997.
20. Litan, Robert E., and Jonathan Rauch. American Finance for the 21st Century. Washington, DC: United States Department of the Treasury, November 17, 1997.
21. Miller, Merton H. "Do the M&M Propositions Apply to Banks?" Journal of Banking & Finance 19 (1995), 483-489.
22. Peltzman, Sam. "Capital Investment in Commercial Banking and Its Relationship to Portfolio Regulation." Journal of Political Economy 78, no. 1 (January-February 1970), 1-26.
23. Temzelides, Ted. "Are Bank Runs Contagious?" Federal Reserve Bank of Philadelphia. Business Review (November-December 1997), 3-13.
24. Whalen, Gary. "The Competitive Implications of Safety Net Related Subsidies." Office of the Comptroller of the Currency, Economics Working Paper 97-9, May 1997.