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Informational scope economies provide a cost advantage to universal banks offering "one-stop shopping" for lending and underwriting that enables them to "lock in" their clients' subsequent business. This market power reduces universal banks' incentive, relative to that of specialized investment banks, to apply costly underwriting efforts; consequently, universal banks are less successful in selling their clients' securities. Our results suggest that an integrated financial services market is less innovative than one with specialized intermediaries. Our analysis also identifies economy, intermediary, and firm characteristics that motivate either the integration or segmentation of bank lending and underwriting. [ABSTRACT FROM AUTHOR]

This paper examines how the place of banks in the inter- corporate network has changed as a result of their decreasing role as financial intermediaries in the U.S. economy. An analysis of comprehensive data on the boards of the fifty largest banks and their connections with the several hundred largest nonbank corporations from 1982 to 1994 shows that the centrality of banks has significantly declined as executives of major corporations, particularly those representing central firms, joined bank boards at a substantially lower rate. Declining centrality reflects a strategic choice on the part of the banks: as the returns available from lending to major corporations have declined, the largest banks have moved into other forms of business and reduced their recruiting of centrally located directors. We conclude with a discussion of the role of financial intermediation in shaping the social organization of the economy. [ABSTRACT FROM AUTHOR]

The article describes a study which explored the differences between types of branch bank managers under divergent managerial policy in the United States. The author describes the pattern of banks operating in the United States as it relates to economic growth in the country and draws a distinction between managers and administrator. The author presents a comparison of branch bank managers under centralization and decentralization and describes the differences in management styles between managers of different branches.

This paper examines the evolution of intra-financial sector lending in the United States, 1950-2012, constructing estimates from the Federal Reserve's Flow of Funds Accounts. Lending between financial institutions has grown nearly five-fold since the 1950s and currently accounts for roughly half of all financial sector lending. In the run up to the financial crisis of 2007-2008, the growth of intra-financial lending was concentrated in assets highly implicated in the genesis of the crisis, suggesting that this growth may have contributed to the crisis. This growth in intra-financial lending also raises questions about the contribution of the financial sector to the real economy. [ABSTRACT FROM AUTHOR]

The article focuses on an analysis of regulatory developments of systemically important financial institutions (SIFIs). It mentions about the Volcker rule, the taxing of systemic risk and quantitative limits that address or mitigate the systemic risk posed by SIFIs. It discusses several international initiatives including higher capital buffers, centrally cleared derivate markets and special resolution regimes that mitigate externalities posed by SIFIs.

The article discusses how regulatory reliance affects credit ratings in the U.S. It states that ratings were led to capital markets' indispensable instruments due to many regulations in which they were tied to. It mentions that well-intentioned regulations may become very unfavorable, which could result to future and increasing social and regulatory costs. It also argues on the insufficiency of the reputational concerns in assuring accurate ratings. It suggests the need to get rid of the regulatory reliance and to subject rating agencies for market test in order to improve the quality of ratings and to preserve their function in the capital markets.

The financial crisis profoundly affected the USA economy, highlighting many problems related to the five management systems of financial institutions. But the most important aspect that influenced the dramatic evolution of these institutions in the last few years was the inadequate management manifested in the lack of coordination and equilibrium between the five systems. Most of the problems highlighted in the financial crisis can be pursued at the deficiencies related to the five leadership systems inside each major public or private actor from the financial markets: incentive measures, control and information technology, book-keeping, human capital, culture. [ABSTRACT FROM AUTHOR]

In the financial debacle, public and private organizations failed to protect owners and stakeholders from calamity. Given the immense financial bubble, could improved governance have made a difference? Many large complex financial institutions may not be sufficiently governable to avoid unpleasant major surprises. Ponderous processes of enacting laws and regulations, and the substantial influence of powerful stakeholders in those processes, mean that fluid markets are likely to mitigate or even avoid the impact of regulatory improvements that policymakers suggest. Better information must flow to decision makers, but the dynamics of a bubble may impede effective risk management by financial firms and government. [ABSTRACT FROM AUTHOR]

Nearly all states recognize the principle of the made whole rule which mandates that an insured be fully compensated for its loss before its insurer is reimbursed for its payouts. Some states apply the rule to an insured's overall loss, while others engage in an element-by-element examination of damages and allow an insurer to seek reimbursement once the insured has recovered its insured losses. States also take varying approaches on whether, and in what circumstances, insurers can expand their subrogation-like rights by contract. This article sets out a brief history of equitable and legal subrogation and the made whole rule; discusses various applications of the rule and related equitable issues, such as the allocation of attorneys fees for third-party recoveries that benefit both insured and insurer; and offers practice tips for insureds and counsel facing environmental claims. [ABSTRACT FROM AUTHOR]

In the light of the infamous 911 - the terrorist attack of New York World Trade Center on 9 Sep 2001, financial institutions should not only screen, but also know their customers well. Here, the author examines (in the Singapore context - though applicable elsewhere too) the notion and practice of knowing one's customers: this makes not only good business sense, but also allows for both best account management and excellent regulatory practices. Such good practices thus allow enhancements of the financial institution's fight against money-laundering with an added but subtle way of combating terrorism. [ABSTRACT FROM AUTHOR]

The article presents an overview of investment bank regulations in the U.S. It offers a summary of the history of the Securities and Exchange Commission (SEC) rules of brokers and banks based on its capital adequacy and systemic risks as well as discusses alternative means for reforming regulation of investment banks. It analyzes proposals being made towards financial reform that intends to address the crisis faced by the financial sector.

Defines correlation products and explores the problems they raise for risk management systems in financial institutions in the United States. Diff swap as an example of correlation product; Implications for risk management and supervisory practices.

Focuses on the securities and investment activities of financial institutions in the United States. Evaluations on the management programs for securities services; Discussions on the provisions of the Glass-Steagall Act of 1933; Proposal to provide investment advice on purchase and sales of secondary market securities.