For decades, privately held banks dominated local lending, operating outside the constant glare of public markets. Over time, however, a growing share of the U.S. banking system has transitioned to public ownership. While public listings are often viewed as a sign of strength, scale, or access to capital, recent research suggests a more subtle consequence: going public changes how banks take risk.
The Stock Market and Bank Risk-Taking
Falato, Antonio and Scharfstein, David
Journal of F...
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