Finance: Research, Policy and Anecdotes

Emerging scholar conference… and the winner is…

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.