Tag Archives: Sits

How Basel III Modifications The place Capital Sits: Nonbank Subsidiaries as Fairness Reservoirs

How Basel III Modifications The place Capital Sits: Nonbank Subsidiaries as Fairness Reservoirs

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 …