We held our 5th Emerging Scholar conference at Cass this week, with lots of
exciting work by PhD students and recent graduates. I won’t be able to give a run-down of all the papers presented, but let me point to the winner of the best paper award: Thomas
Lambert presented a fascinating paper on the relationship between banks’ lobbying activity and the likelihood of a regulatory enforcement action against the bank. He shows that U.S. regulators are less likely to impose regulatory enforcement
actions against lobbying banks, while these banks are also more risk-taking. In spite of concerns on endogeneity, this seems suggestive evidence for regulatory capture and moral hazard.