Comment on Hancock, Laing and Wilcox and Peek and Rosengren

Two separate papers by authors Hancock, Laing and Wilcox, on one hand, and Peek and Rosengren, on the other, deal with the relationship between bank action and the economic and regulatory developments during a period of tight credit. The first set of authors point out the capital and securities reacted faster to shocks that the rest of bank activities. The second set of authors had a narrower focus: the effect of regulation on New England banks.