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The determinants of the wealth effects of banks' expanded securities powers Author info | Abstract | Publisher info | Download info | Related research | Statistics David P. Ely
Kenneth J. Robinson
After several unsuccessful attempts by Congress to repeal Glass-Steagall restrictions on banks, the Federal Reserve more than doubled the revenue that commercial banking organizations' securities subsidiaries may earn from certain securities activities. The wealth effects associated with this event for a sample of publicly traded banking organizations are examined. We find evidence that indicates the revenue limit resulted in a less-than-optimal mix of activities for securities subsidiaries. However, subsequent merger activity that could have been generated by the revenue increase was not viewed favorably by investors.
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Paper provided by Federal Reserve Bank of Dallas in its series Financial Industry Studies Working Paper with number
99-1.
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Date of creation: 1999Date of revision:
Handle: RePEc:fip:feddfi:99-1Contact details of provider: Email: Web page: http://www.dallasfed.org/ More information through EDIRC
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Keywords: Securities ; References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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[Downloadable!]
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[Downloadable!] (restricted)
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[Downloadable!]
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Proceedings ,
Federal Reserve Bank of Chicago, pages 476-514.
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