The Failure Mechanics of Dealer Banks

39 Pages Posted: 5 May 2010 Last revised: 3 Nov 2013

See all articles by Darrell Duffie

Darrell Duffie

Stanford University - Graduate School of Business; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 2010

Abstract

I 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. See also, http://ssrn.com/abstract=1699600.

Keywords: Liquidity, dealer banks, OTC markets, financial crisis

JEL Classification: G10, G15, G24, G20

Suggested Citation

Duffie, James Darrell, The Failure Mechanics of Dealer Banks (March 1, 2010). BIS Working Paper No. 301. Available at SSRN: https://ssrn.com/abstract=1599482 or http://dx.doi.org/10.2139/ssrn.1599482

James Darrell Duffie (Contact Author)

Stanford University - Graduate School of Business ( email )

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