The seasonality of banking failures during the late National Banking Era

2006 ◽  
Vol 39 (1) ◽  
pp. 296-319 ◽  
Author(s):  
Pere Gomis-Porqueras ◽  
Bruce Smith
Keyword(s):  
National Banking Era

scholarly journals Too Big to Fail Before the Fed

2016 ◽  
Vol 106 (5) ◽  
pp. 528-532 ◽  
Author(s):  
Gary Gorton ◽  
Ellis W. Tallman
Keyword(s):  
Federal Reserve ◽  
Financial Crises ◽  
Private Bank ◽  
Too Big To Fail ◽  
Short Term ◽  
Federal Reserve System ◽  
National Banking Era ◽  
Reserve System ◽  
The U.S

“Too-big-to-fail” is consistent with policies followed by private bank clearing houses during financial crises in the U.S. National Banking Era prior to the existence of the Federal Reserve System. Private bank clearing houses provided emergency lending to member banks during financial crises. This behavior strongly suggests that “too-big-to-fail” is not the problem causing modern crises. Rather it is a reasonable response to the threat posed to large banks by the vulnerability of short-term debt to runs.

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