Nicola Cetorelli and Shohini Kundu This put up is the second in a three-part collection on how financial institution regulation interacts with the organizational construction of banking corporations. The primary put up documented that nonbank subsidiaries inside financial institution holding corporations (BHCs) are massive, equity-rich “reservoirs,” and that bank-level capital diverged sharply from consolidated capital after …
Nicola Cetorelli and Shohini Kundu This submit concludes a three-part sequence on how financial institution regulation interacts with the organizational construction of banking companies. The primary submit documented the equity-rich nonbank subsidiaries inside financial institution holding corporations (BHCs); the second submit confirmed that BHCs met Basel III by reallocating capital internally, shifting fairness from nonbank associates …