Dismantling Large Bank Holding Companies for Their Own Good and for the Good of the Country

23 Pages Posted: 24 Mar 2013

See all articles by Tamar Frankel

Tamar Frankel

Boston University School of Law

Date Written: March 22, 2013

Abstract

This paper suggests that bank holding companies are in fact “financial malls.” I demonstrates the problems that they pose for the financial system, not only by size but by inefficient and inappropriate concentration. The article suggests restructuring of bank holding companies by introducing more market discipline to the various “shops” in the mall as well as concentrating services for the purpose of efficiency. The Article concludes with suggestion that rather than imposing a restructure by law it may perhaps be possible to entice managements that look to the long-term future to follow a restructure voluntarily.

Keywords: bank holding companies, BHCs, market discipline, bank regulation, BHC risk-taking, banks' underwriting practices, FDIC

JEL Classification: G21, K19, K23, K39

Suggested Citation

Frankel, Tamar, Dismantling Large Bank Holding Companies for Their Own Good and for the Good of the Country (March 22, 2013). Boston Univ. School of Law, Law and Economics Research Paper No. 13-05; Boston Univ. School of Law, Public Law Research Paper No. 13-05. Available at SSRN: https://ssrn.com/abstract=2238173 or http://dx.doi.org/10.2139/ssrn.2238173

Tamar Frankel (Contact Author)

Boston University School of Law ( email )

765 Commonwealth Avenue
1070G
Boston, MA 02215
United States
617-353-3773 (Phone)
617-353-3077 (Fax)

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