Why do banks fail? What are the characteristics of banks that fail? Are these consistently the same over the course of history? Emil Verner (MIT) says yes, there are some commonalities all US banks that failed in the last 160 years share; moreover he claims that bank failures are quite predictable. Why then don't we prevent most bank failures? Or shouldn't we after all?
Emil Verner (MIT) in conversation with Carmen Hofmann (eabh)
The conversation draws on a paper jointly written with Sergio Correia (Federal Reserve System) and Stephan Luck (Federal Reserve Bank of New York).