Transparency in Bank Risk Modeling: A Solution to the Conundrum of Bank Regulation

• Published date: 01 March 2012
• DOI: http://doi.org/10.1111/j.1745-6622.2012.00367.x
• Date: 01 March 2012
• Author: David P. Goldman

VOLUME 24 | NUMBER 1 | WINTER 2012

APPLIED CORPORATE FINANCE

Journal of

A MORGAN STANLEY PUBLICATION

In This Issue: Liquidity and Value

Financial Markets and Economic Growth 8Merton H. Miller, University of Chicago

A Look Back at Merton Miller’s “Financial Markets and Economic Growth” 14 Charles W. Calomiris, Columbia Business School

Liquidity, the Value of the Firm, and Corporate Finance 17 Yakov Amihud, New York University, and Haim Mendelson,

Stanford University

Getting the Right Mix of Capital and Cash Requirements

in Prudential Bank Regulation

33 Charles W. Calomiris, Columbia Business School

CARE/CEASA Roundtable on Liquidity and Capital Management 42 Panelists: Charles Calomiris, Columbia Business School;

Murillo Campello, Cornell University; Mark Lang, University

of North Carolina; and Florin Vasvari, London Business School.

Moderated by Scott Richardson, London Business School.

Statement of the Financial Economists Roundtable

How to Manage and Help to Avoid Systemic Liquidity Risk

60 Robert Eisenbeis, Cumberland Advisors

Clearing and Collateral Mandates: A New Liquidity Trap? 67 Craig Pirrong, University of Houston

Transparency in Bank Risk Modeling:

A Solution to the Conundrum of Bank Regulation

74 David P. Goldman, Macrostrategy LLC

Revisiting the Illiquidity Discount for Private Companies:

A New (and Skeptical) Restricted-Stock Study

80 Robert Comment

Are Investment Banks Special Too? Evidence on

Relationship-Specic Capital in Investment Bank Services

92 Chitru S. Fernando and William L. Megginson,

University of Oklahoma, and Anthony D. May,

Wichita State University