Financial Safety Net Issues: Costs, Benefits, and
Implications for Regulation
CONFERENCE ON BANK STRUCTURE AND COMPETITION
MAY 9–11, 2001
7:30 am – 8:25
am
Registration
Continental Breakfast
8:25 am – 8:30
am
William C.
Hunter, Senior Vice President and Director of Research, Federal Reserve Bank of
Chicago
8:30 am – l0:00
am
The Role of Banking Relationships
Moderator and Discussant:
The Ability of Banks to Lend to Informationally Opaque Small Businesses
Allen Berger,
Board of Governors of the Federal Reserve System
Leora Klapper,
World Bank
Gregory Udell,
Indiana University
Firms and Their
Distressed Banks: Lessons from the Norwegian Banking Crisis
Steven Ongena,
Tilburg University
David C. Smith,
Board of Governors of the Federal Reserve System
Dag Michalsen,
Norwegian School of Management
Bank Borrowers
and Loan Sales: New Evidence on the Uniqueness of Bank Loans
Sandeep Dahiya,
Georgetown University
Manju Puri,
Stanford University
Anthony
Saunders, New York University
10:00 am – l0:20
am
Break
10:20 am – 11:50
pm
Regulatory Incentive Alignment
Moderator and
Discussant: Bruce D. Smith, University of Texas-Austin
Allocating Bank
Regulatory Powers: Lender of Last Resort, Deposit Insurance, and Supervision
Charles M. Kahn,
University of Illinois at Urbana-Champaign
João A. C.
Santos, Federal Reserve Bank of New York
Dollarization,
Bailouts, and the Stability of the Banking System
Douglas Gale,
New York University
Xavier Vives,
Consejo Superior de Investigaciones Científicas (CSIC), Institut d'Anàlisi
Econòmica
The Gains from
Financial Services Modernization
Philip E.
Strahan, Federal Reserve Bank of New York and Massachusetts Institute of
Technology
Amir Sufi,
Federal Reserve Bank of New York
12:00 pm –1:15
pm
1:20 pm – 3:10
pm
Financial Crises and Contagion
Moderator and
Discussant:
A New Approach
to Measuring Financial Contagion
Kee-Hong Bae,
Hong Kong University
G. Andrew
Karolyi, Ohio State University
Renè M. Stultz,
Ohio State University
Causes of U.S.
Bank Distress during the Depression
Charles W.
Calomiris, Columbia University
Joseph R. Mason,
Drexel University
Asset Market
Linkages in Crisis Periods
Philipp
Hartmann, European Central Bank and Centre for Economic Policy Research (CEPR)
Stefan
Straetmans, Maastricht University
Casper G. De
Vries, Erasmus Universiteit Rotterdam
Estimating
Bilateral Exposures in the German Interbank Market: Is There a Danger of
Contagion?
Christian Upper,
Deutsche Bundesbank
Andreas Worms, Deutsche
Bundesbank
3:10 pm – 3:30
pm
3:30 pm – 5:00
pm
Bank Capital Issues
Moderator and
Discussant:
Bank Capital
Regulation as an Incentive Mechanism: Implications for Portfolio Choice
Alistair Milne,
City University Business School
Testing for
Market Discipline in the European Banking Industry: Evidence from Subordinated
Debt Issues
Andrea Sironi,
Universita Commerciale Luigi Bocconi
Managerial
Incentives and the Efficiency of Capital Allocation in U.S. Commercial Banking
Joseph P.
Hughes, Rutgers University
William W. Lang,
Office of the Comptroller of the Currency
Choon-Geol Moon,
Hanyang University
Michael S.
Pagano, Villanova University
5:15 pm – 7:30
pm
Michael
H. Moskow, President and Chief Executive Officer
Federal
Reserve Bank of Chicago
8:25
am – 9:20 am
Keynote Address
Alan
Greenspan, Chairman, Board of Governors of the Federal Reserve System
9:20
am – 9:45 am
9:45
am – 11:55 am
Conference Theme Panel:
Moderator: William C. Hunter, Senior Vice President and Director of Research, Federal Reserve Bank of Chicago
Robert E. Litan,
Vice President and Director, Economic Studies, and Cabot Family Chair in
Economics, Brookings Institution
Laurence
H. Meyer, Governor, Board of Governors of the Federal Reserve System
Arthur
J. Murton, Director, Division of Insurance, Federal Deposit Insurance
Corporation
John
C. Weicher, Senior Fellow and Director, Urban Policy Studies, Hudson Institute
12:05 pm – 1:40
pm
LUNCHEON
George Soros, Chairman, Soros
Fund Management LLC
Thursday
1:50 pm – 3:30 pm
Moderator:
Hesna Genay, Federal Reserve Bank of Chicago
The Simple Microeconomics of
Government-Sponsored Enterprises
Wayne Passmore, Board of Governors of the Federal Reserve System
Roger Starks, Board of Governors of the Federal Reserve System
The Effects of
Purchases of Mortgages and Securitization by Government Sponsored Enterprises
on Mortgage Yield Spreads and Volatility
Alden Toevs,
First Manhattan Consulting Group
Andy Naranjo,
University of Florida
Do
Federal Home Loan Bank Membership and Advances Lead to More Bank Risk?
Dusan Stojanovic, Federal
Reserve Bank of St. Louis
Mark D. Vaughan, Federal
Reserve Bank of St. Louis
Timothy J. Yeager, Federal
Reserve Bank of St. Louis
3:30 pm –3:55 pm
Break
3:45 pm – 5:30 pm
Alternative
Deposit Insurance Structures
Moderator: George G. Kaufman, John F. Smith, Jr. Professor of Finance and Economics, Loyola University Chicago
Developing Effective Deposit Insurance Systems
J. P. Sabourin, President and Chief Executive Officer, Canada
Deposit Insurance Corporation, and Chairman, Financial Stability Forum, Working
Group on Deposit Insurance
How Good are European-Union Deposit Insurance Schemes?
Maximilian J. B. Hall, Loughborough University
Designing Financial Safety Nets to Fit Country Circumstances
Edward J. Kane, Boston College
Estimating
Fair Deposit Insurance Premiums for a Sample of Banks under a New Long-term,
Insurance Pricing Methodology
George
Pennacchi, University of Illinois at Urbana-Champaign
5:45 pm – 7:30
pm
8:30
am – 10:00 am
Session A: Bank Business
Strategies
Moderator:
James T. Moser, Federal Reserve Bank of Chicago
The Diffusion of
a Financial Innovation: An Examination of the Early Adoption of Small Business
Credit Scoring
Jalal Akhavein,
University of Pennsylvania
W. Scott Frame,
Federal Reserve Bank of Atlanta
Lawrence J.
White, New York University
Robert DeYoung,
Federal Reserve Bank of Chicago
Recent Trends in
Bank Loan Syndications: Evidence for 1995 to 1999
Jonathan Jones,
Office of Thrift Supervision
William W. Lang,
Office of the Comptroller of the Currency
Peter Nigro,
Office of the Comptroller of the Currency
Moderator: Nicola
Cetorelli, Federal Reserve Bank of Chicago
Issues of
Deposit Insurance Reform
James A. Wilcox,
Office of the Comptroller of the Currency
Deregulation and
Correspondent Banking
James McAndrews,
Federal Reserve Bank of New York
Philip E.
Strahan, Federal Reserve Bank of New York
Reforming Bank
Antitrust Analysis: The Competitive Analysis No Longer Reflects Reality
Douglas
Austin, Austin Financial Services, Inc.
Craig
D. Bernard, Austin Financial Services, Inc.
10:00
am – 10:20 am
10:20
am – 11:50 am
Session C: The Effects of
Bank Consolidation and Expansion
Moderator:
Elijah Brewer III, Federal Reserve Bank of Chicago
Size,
Charter Value, and Risk in Banking: An International Perspective
Gianni
De Nicolo, International Monetary Fund
Local
Market Entry and Bank Efficiency
Douglas
Evanoff, Federal Reserve Bank of Chicago
Evren
Örs, Southern Illinois University
Local Bank
Office Ownership, Deposit Control, Market Structure, and Economic Growth
Robert N.
Collender, U. S. Department of Agriculture
Sherrill L.
Shaffer, University of Wyoming
Moderator: David
A. Marshall, Federal Reserve Bank of Chicago
The Costs and
Benefits of Moral Suasion: Evidence from the Rescue of Long-Term Capital
Management
Craig Furfine,
Bank for International Settlements
Does Deposit
Insurance Increase Banking System Stability? An Empirical Investigation
Asli
Demirgüç-Kunt, World Bank
Enrica
Detragiache, International Monetary Fund
Did Depositors
Discipline Financial Institutions in Pre-Crisis Thailand? Implications for the
Thai Crisis
Timothy P.
Opiela, DePaul University
12:00
pm – 1:45 pm
Moderator:
Michael Moskow, President and Chief Executive Officer, Federal Reserve Bank of
Chicago
Keynote:
Senator Phil Gramm, Chairman, Committee on Banking, Housing, and Urban Affairs,
U.S.
Senate
1:45
pm – 3:30 pm
GSEs: The
Impact on Mortgage Markets
Moderator:
Robert R. Bliss, Federal Reserve Bank of Chicago
The CBO’s Analysis of the Federal Subsidy to Housing GSEs
Deborah Lucas, Chief Economist, Congressional Budget Office
Marvin Phaup, Deputy Assistant Director, Special Studies Division,
Congressional Budget Office
Fannie Mae and the Mortgage Market: Setting the Record Straight
Tim Howard, Executive Vice President and Chief Financial Officer,
Federal National Mortgage Association (Fannie Mae)
Costs and Benefits of
Mortgage GSEs
James C. Miller III, Director, Law and Economics Consulting Group
The Structure of Federal Subsidies: Deposit Insurance Versus
Sponsorship of GSEs
Richard
Scott Carnell, Fordham Law School