Since this is the first web page for my industry site there is nothing flashy, just exceptional content. Below you will find a couple of key articles on the Reconstruction Finance Corporation, the organization that set the US precedent for bank nationalization and continued the tradition of directed credit. For a little background, the RFC was originally founded as a temporary expedient for for one year and was closed roughly twenty-five years later. Hence, I don't have much faith in today's efforts. I promise more to come, including my weekly commentaries and research papers, as well as work of contributing authors and other viewpoints. Please enjoy these reports while I get that set up!

 

Historical Crisis Resources (all of these are large PDFs, so they may take some time)

Kimmel 1939-The Availability of Bank Credit 1933-1938 (One of two exceptional reports attempting to untangle credit supply and demand conditions in the Great Depression. Conclusion: supply and demand are inseparable)

Hardy and Viner 1935-Report on the Availability of Bank Credit in the Seventh Federal Reserve District (One of two exceptional reports attempting to untangle credit supply and demand conditions in the Great Depression. Conclusion: supply and demand are inseparable)

Cooper 1957-The Role of Banks in the Liquidation of C&I Loans of the RFC (Could otherwise title this "How do we exit the programs we are about to undertake?")

Sullivan-RFC and Corporate Policy 1951 (RFC lent and took preferred stock investments in ALL types of corporations, replacing management and directing them to profitability)

RFC Circulars (Operating rules of the RFC)

 

 

My Contemporary Research

“Mortgage Loan Modification: Promises and Pitfalls,” SSRN Working Paper: http://ssrn.com/abstract=1027470 , October 2007.

“Where Did the Risk Go? How Misapplied Bond Ratings Cause Mortgage Backed Securities and Collateralized Debt Obligation Market Disruptions,” (with Joshua Rosner). SSRN Working Paper: http://ssrn.com/abstract=1027475, May 3, 2007.

“How Resilient Are Mortgage Backed Securities to Collateralized Debt Obligation Market Disruptions?” (with Joshua Rosner). SSRN Working Paper: http://ssrn.com/abstract=1027472, February 13, 2007.

Deriving Credit Portfolio Correlation Properties from Large Asset-backed Security Pools,” (with Eric Higgins), Wharton Financial Institutions Center Working Paper #05-43.

“Cliff Risk and the Credit Crisis,” in The Credit Market Turmoil of 2007-2008: Implications for Public Policy, Douglas Evanoff and George Kaufman, eds., 2008 (forthcoming). Available at SSRN: http://ssrn.com/abstract=1296250 This paper was listed on SSRN's Top Ten download list for Behavioral & Experimental Finance, 12/04/2008; SSRN's Top Ten download list for Corporate Finance Journals, 12/12/2008, 01/04/2009, and 01/18/2009; SSRN's Top Ten download list for Industrial Organization & Regulation Journals, 01/07/2009; and SSRN's Top Ten download list for Corporate Finance Journals and Corporate, Securities & Finance Law Journals, 01/15/2009.

“Structuring for Leverage: CPDOs, SIVs, and ARSs,” in Prudent Lending Restored: Securitization after the 2007 Mortgage Securities Meltdown, part of the Brookings-Wharton Series on Financial Intermediaries, Robert Litan, Richard Herring, and Yasuyuki Fuchita, eds. Washington, DC: Brookings Institution Press, 2008 (forthcoming). Available at SSRN: http://ssrn.com/abstract=1288051. This paper was listed on SSRN's Top Ten download list for Financial Accounting, 12/13/2008 and 12/21/2008; and SSRN's Top Ten download list for ARN Subject Matter eJournals and Accounting Research Network, 12/22/2008.

“A Real Options Approach to Bankruptcy Costs: Evidence from Failed Commercial Banks during the 1990s.” Journal of Business, July 2005 (79:3), pp. 1523-53. This paper is a revised version of Wharton Financial Institutions Center Working Paper # 02-20. This paper was listed in the Social Science Research Network's Top Ten Recent Download lists for Banking & Financial Institutions, Corporate Finance, and Derivatives, November 2002. An earlier version also circulated on the Social Science Research Network as “What Do We Know about Bankrupt Firm Liquidation Rates? Evidence from Commercial Bank Liquidations during the 1930s and 1990s.”

“Credit Card Securitization and Regulatory Arbitrage,” (with Charles Calomiris). Journal of Financial Services Research, August 2004 (26:1), pp. 5-27 (lead article). This paper is a revised version of Federal Reserve Bank of Philadelphia Working Paper no. 03-7, April 2003.

“What is the Value of Recourse to Asset Backed Securities? A Study of Credit Card Bank ABS Rescues,” (with Eric Higgins). Journal of Banking and Finance, April 2004 (28:4), pp. 857-874. This paper is a revised version of Federal Reserve Bank of Philadelphia Working Paper no. 03-06, April 2003.

 

My Historical Research

“Bank Asset Liquidation and the Propagation of the Great Depression,” (with Ali Anari and James Kolari). Journal of Money, Credit, and Banking, August 2005 (37:4), pp. 753-773. This paper is a revised version of Wharton Financial Institutions Center Working Paper # 02-35. This paper was listed in the Social Science Research Network's Top Ten All Time Download and Top Ten Recent Download lists for Banking & Insurance Abstracts, October 2002, and the Top Ten Recent Download list for Economic History, November 2002.

“Fundamentals, Panics and Bank Distress during the Depression,” (with Charles Calomiris). American Economic Review, December 2003 (93:5), pp. 1615-1647. This paper is a revised version of NBER Working Paper no. 7919, September 2000. This paper was listed in the Social Science Research Network's Top Ten Recent Download list for Economic History, January 2003.

“Too-big-to-fail, Government Bailouts, and Managerial Incentives: The Case of Reconstruction Finance Corporation Assistance to the Railroad Industry during the Great Depression,” (with Daniel Schiffman). In Too-Big-To Fail: Policies and Practices in Government Bailouts, Benton E. Gup, ed. Westport, CT: Greenwood Press, 2003, pp. 49-75. Previous draft available as SSRN Working Paper http://ssrn.com/abstract=1337203.

“How to Restructure Failed Banking Systems: Lessons from the U.S. in the 1930s and Japan in the 1990s,” (with Charles Calomiris). In Privatization, Corporate Governance and Transition Economies in East Asia, Takatoshi Ito and Anne Krueger, eds. Chicago: University of Chicago Press 2004, pp. 375-420. This paper is a revised version of NBER Working Paper No. W9624.

“Consequences of U.S. Bank Distress during the Great Depression.” (with Charles Calomiris). American Economic Review, June 2003 (93:3), pp. 937-947. This paper is a revised version of NBER Working Paper no. 7919, September 2000. This paper was listed in the Social Science Research Network's Top Ten Recent Download list for Economic History, January 2003.

“The Political Economy of RFC Assistance during the Great Depression.” Explorations in Economic History, April 2003 (40:2), pp. 101-121.

“Do Lender of Last Resort Policies Matter? The Effects of Reconstruction Finance Corporation Assistance to Banks.” Journal of Financial Services Research, September 2001 (20:1), pp. 77-95.

“Reconstruction Finance Corporation Assistance to Financial Institutions and Commercial & Industrial Enterprise in the US Great Depression, 1932 – 1937.” In Resolution of Financial Distress, Stijn Claessens, Simeon Djankov, and Ashoka Mody, eds. Washington: World Bank Press, 2001, pp. 167-204. Previous draft available as SSRN Working Paper  http://ssrn.com/abstract=1337171.

Demographics and Personal Bankruptcies.” Research in Banking and Finance, November 2000 (1:1), pp. 229-257.

“Contagion and Bank Failures during the Great Depression: The Chicago Banking Panic of June 1932,” (with Charles Calomiris). American Economic Review, December 1997 (87:5), pp. 863-884. This paper is a revised version of NBER Working Paper no. 4934, November 1994.

 

Files for my ongoing research projects (restricted access)

Records of RFC Search in Archives of the Clerk of the House (password required)

MI Data (password required)

Data Abbreviations and Definitions