Regulation

The subsidized emergency takeover of Credit Suisse by UBS brings the current global "too big to fail" regime into question. This column argues that an in-depth analysis of the global resolution framework by both regulators and academics is needed. The main question is whether a resolution of a global systemically important bank is indeed feasible in plausible scenarios. An affirmation would clearly be the best possible result of this analysis. However, if such a resolution proves not to be realistic, then there should be no hesitation to drastically reduce the global risks of such institutions via regulation of their business models.

Adopting a deferred pay scheme for bank managers would provide them with needed funding during a downturn and would incentivize more conservativism when it comes to risk-taking.

Following a widely cited report on unrecognized bank losses due to interest rate rises, Amit Seru and his co-authors have taken a close look...

Would increasing regulation of the U.S. airline industry resolve the issues that Americans have heard about and experienced in the past few months? Clifford...

New research reveals that cryptocurrency advice from social media influencers could lead investors to lose money on average. Are regulators doing enough to protect...

Laurence Kotlikoff and Rick Miller argue that banking as we know it is dying. It’s time to arrange a smooth transition to limited purpose...

Accounting procedures for held-to-maturity assets in banks allows them to avoid taking losses. Research from professors Bischof, Laux, and Leuz shows how forcing banks...

Bank regulators have always assumed that bank deposits are ‘sticky,’ but the advent of digital banking is changing that. New research focuses not on...

In new research, Matteo Romagnoli argues that for the electricity sector to decarbonize as part of the broader green transition, regulators must liberalize markets...

Members of Congress are inundated with an avalanche of correspondence on a daily basis. But what persuades them to heed the call? Recent research...