Coexistence and Specialization of Investment Banks and Commercial Banks: Evidence from Corporate Bond Underwriting

2001 ◽  
Author(s):  
Wei-Ling Song
Keyword(s):  
Commercial Banks ◽  
Corporate Bond ◽  
Investment Banks ◽  
Bond Underwriting

Origins

2020 ◽  
pp. 15-30
Author(s):  
Arthur E. Wilmarth Jr.
Keyword(s):  
New York ◽  
Commercial Banks ◽  
Investment Banks ◽  
Late Nineteenth Century ◽  
Government Bonds ◽  
Survival And Growth ◽  
Late Nineteenth ◽  
Securities Business ◽  
The U.S

Chapter 1 describes the rise of universal banks in the U.S. during the late nineteenth and early twentieth centuries. Large commercial banks in New York and Chicago entered the securities business in the late nineteenth century by forming alliances with leading investment banks. In 1902, the federal regulator of national banks (the Comptroller of the Currency) told national banks that they could not underwrite or trade in securities except for government bonds. Large national banks evaded that prohibition by establishing securities affiliates. Securities affiliates of national banks survived challenges from the Justice Department, Congress, and the Comptroller of the Currency between 1911 and 1920. Universal banks and their securities affiliates prospered during the 1920s with the enthusiastic support of the Harding and Coolidge administrations. The survival and growth of universal banks during the early twentieth century demonstrated their ability to overcome political and regulatory obstacles.

On the Benefits of Universal Banks: Concurrent Lending and Corporate Bond Underwriting

FEDS Notes ◽  
2018 ◽  
Vol 2018 (2143) ◽  
Author(s):  
Elliot Anenberg ◽  
◽  
Maggie Church ◽  
Serafin Grundl ◽  
You Suk Kim ◽  
...  
Keyword(s):  
Corporate Bond ◽  
Bond Underwriting

scholarly journals The Relationship between Credit Risk Management and Profitability between Investment and Commercial Banks in Palestine

2015 ◽  
Vol 7 (11) ◽  
pp. 163
Author(s):  
Mohammed Bayyoud ◽  
Nermeen Sayyad
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Regression Model ◽  
Commercial Banks ◽  
Banking Sector ◽  
Structured Interview ◽  
Investment Banks ◽  
Credit Risk Management ◽  
Bank Managers ◽  
The Relationship

<p>Credit risk management is one of the vital aspects of the financial institutions regardless of their nature. For a more comprehensive analysis of Palestine banking sector, investment and commercial banks both were chosen for assessing the relationship between credit risk management and profitability. Explanatory design of study helped in assessing the casual effect relationship between the research variables. The regression model was used for gathering quantitative findings while structured interview from bank managers was selected for gathering qualitative data. The findings of the regression model in the current study confirmed that there is no consequence of credit risk on profitability of commercial and investment banks of Palestine. Additionally, it was also found that there is no difference between the Palestinian commercial and investment banks concerning the relationship.</p>

Frenzy

2020 ◽  
pp. 31-49
Author(s):  
Arthur E. Wilmarth Jr.
Keyword(s):  
High Risk ◽  
Stock Market ◽  
Business Model ◽  
Commercial Banks ◽  
Private Investment ◽  
Department Store ◽  
Investment Banks ◽  
National Bank ◽  
Credit Boom ◽  
The U.S

Large commercial banks and their securities affiliates helped to finance an unsustainable credit boom and stock market bubble during the 1920s. Charles Mitchell of National City Bank and Albert Wiggin of Chase National Bank pioneered a new universal banking (“financial department store”) business model for large commercial banks. The rise of universal banks resulted in frenzied competition between those institutions and private investment banks. That rivalry resulted in the widespread marketing and sale of speculative, high-risk securities to unsophisticated, poorly informed investors. More than $80 billion of debt and equity securities were issued in the U.S. between 1919 and 1930. The easy availability of financing during the 1920s caused many American companies and households to overexpand and take on excessive debts. Those debt burdens left businesses and consumers in a highly vulnerable position when the credit boom suddenly ended in late 1929.

Commercial Banking

2016 ◽  
pp. 109-132
Author(s):  
Gerarda Westerhuis
Keyword(s):  
Nineteenth Century ◽  
Commercial Banks ◽  
State Regulation ◽  
Commercial Banking ◽  
Investment Banks ◽  
On Demand ◽  
Universal Bank ◽  
Late Twentieth ◽  
Corporate Customers ◽  
Late Twentieth Century

This chapter provides an overview of the development of commercial banking—defined as taking deposits payable on demand and originating loans to private and corporate customers—from the mid-nineteenth century to the present. Two characteristics are underlined: state regulation, primarily dictated by concerns about banks’ position as deposit takers; and banks’ role in the financing of industry and more generally in economic growth including their assigned responsibility. The changing nature of these two features has shaped the development of commercial banks since the onset of industrialization. In all countries, with the exception of England, commercial banks developed into some kind of universal bank in the course of the nineteenth century. This converging movement ended in the interwar years, when in many countries commercial banks were separated from investment banks. Universal banking became dominant again in the late twentieth century, but in the form of banking conglomerates.

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