The failure mechanics of dealer banks
AbstractI explain the key failure mechanics of large dealer banks, and some policy implications. This is not a review of the financial crisis of 2007–2009. Systemic risk is considered only in passing. Both the financial crisis and the systemic importance of large dealer banks are nevertheless obvious and important motivations.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 301.
Length: 39 pages
Date of creation: Mar 2010
Date of revision:
liquidity; dealer banks; OTC markets; financial crisis;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-11 (All new papers)
- NEP-BAN-2010-04-11 (Banking)
- NEP-CBA-2010-04-11 (Central Banking)
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