However, based on the money center structure, raising the level of internationalization would decrease the severity of contagion because the exposure levels of the money center banks
would become more diversified.
The money center banks
and other banks in the Northeast experience a slight adverse share price reaction to BNE's announcements, while the banks outside the Northeast are not affected.
The regression suggests that for each percentage point of tightening reported by the money center banks
, the percent of owners reporting loans harder to get or all credit needs met is altered by a tenth of a percentage point.
Of course, wholesale departments are a low priority at the big money center banks
, too, even though they don't have the warehousing issues causing mortgage bankers to break out in hives.
Yet, except for a handful of globally-active money center banks
, and a handful of niche players such as National City and Amegy, the U.S.
Whereas in the past, large money center banks
could use an estimate of, say, two standard deviations from the mean of loan losses to determine the adequate ratio of loan loss reserves to total loans, Basel II requires banks to identify which particular credits in a given loan portfolio are most likely to default.
The largest money center banks
, while diverted by the refinance boom of the past year, are poised to embrace technology vendors such as Mindbox and Dorado to implement robust Web offerings.
This prohibition was enacted during the Great Depression, a time when the Congress was concerned that large money center banks
might have earlier bid deposits away from country banks to make loans to stock market speculators, depriving rural areas of financing.
It is possible that some of the money center banks
could be interested in acquiring one or more of the brokers, but such a move is unlikely.
The real bills doctrine along with falling interest rates were major causes of this illusion, and ample liquidity at the nation's money center banks
reinforced this perception.
Waters Magazine was established in 1993 and is published quarterly with a combined paid and controlled circulation of 20,000 financial technology professionals, including executives at securities firms and money center banks
and their counsel, and investment managers.
Rather than suggest that the Fed's foundation furthered solely the interests of the money center banks
, Broz argues that, to a large extent, the Federal Reserve System provided critical public goods in the form of a stable payments infrastructure that was to make regular financial panics a thing of the past.