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dc.contributor.authorMorgan, Donald P.en_US
dc.contributor.authorStiroh, Kevin J.en_US
dc.date.accessioned2012-08-17T14:29:19Z-
dc.date.available2012-08-17T14:29:19Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/60713-
dc.description.abstractThe naming of eleven banks as “too big to fail (TBTF)” in 1984 led bond raters to raise their ratings on new bond issues of TBTF banks about a notch relative to those of other, unnamed banks. The relationship between bond spreads and ratings for the TBTF banks tended to flatten after that event, suggesting that investors were even more optimistic than raters about the probability of support for those banks. The spread-rating relationship in the 1990s remained flatter for TBTF banks (or their descendants) even after the passage of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), suggesting that investors still see those banks as TBTF. Until investors are disabused of such beliefs, investor discipline of big banks will be less than complete.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of New York New York, NYen_US
dc.relation.ispartofseriesStaff Report, Federal Reserve Bank of New York 220en_US
dc.subject.jelG2en_US
dc.subject.jelG3en_US
dc.subject.jelN2en_US
dc.subject.ddc330en_US
dc.subject.keywordmarket discipline, too big to failen_US
dc.subject.stwGroßbanken_US
dc.subject.stwBankinsolvenzen_US
dc.subject.stwKreditwürdigkeiten_US
dc.subject.stwAnleiheen_US
dc.subject.stwUSAen_US
dc.titleToo big to fail after all these yearsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn500373116en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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