“Hedge Funds and Systemic Risk,” speech delivered at the Federal Reserve Bank of Atlanta Financial Markets Conference, May 16. Board of Governors of the Federal Reserve System and U.S. Department of the Treasury (2000). The Feasibility and Desirability of Mandatory Subordinated Debt, report to the Congress, December, http://www.federalreserve.gov/boarddocs/rptcongress/debt/subord_debt_2000.pdf (566 KB PDF). Calomiris, Charles, and Gary Gorton (1991).
Capital adequacy ratios remained high, after the successful recapitalisation with the participation mostly of private investors in late 2015, and banks maintained a very prudent provisioning policy. Furthermore, based on data for the second and third quarters of 2016, banks returned, even if only marginally, to pre-tax profitability.