30 Financial stability analysis in merger applications The second interpretive challenge, which I will address in more detail, arises from the addition of a financial stability factor to the review conducted by the Federal Reserve Board of proposed mergers and acquisitions involving banks and bank holding companies.
31 In  29  Among the useful efforts along these lines are a measure of Conditional Value-at-Risk (CoVaR) (See Tobias Adrian and Markus Brunnermeier (2011), CoVaR (PDF), Federal Reserve Bank of New York Staff Reports 348 (New York: Federal Reserve Bank of New York, September) and a measure of systemic risk based on each firm’s contribution to the expected capital shortfall of the entire financial system in a crisis (See Christian T. Brownlees and Robert F. Engle (2011), “‘Volatility, Correlation and Tails for Systemic Risk Measurement,”‘ New York University Working Paper (New York: New York University, June).