Nonbank Subsidiaries and the Hidden Fragility of Internal Capital Markets Reallocation
This post concludes a three-part series on how bank regulation interacts with the organizational structure of banking firms. The first post documented the equity-rich nonbank subsidiaries inside bank holding companies (BHCs); the second post showed that BHCs met Basel III by reallocating capital internally, moving equity from nonbank affiliates to bank subsidiaries rather than raising new…
We haven't written up this one. Liberty Street Economics has the full story — the link below goes straight to it.
Read the original at libertystreeteconomics.newyorkfed.org →
