Abstract
Risk in securities activities such as underwriting and dealing has become of increasing interest as the separation between commercial and investment banking erodes. In January 1989, the Federal Reserve permitted commercial bank holding companies to engage in limited amounts of corporate securities underwriting and dealing and has recommended to Congress the removal of the Glass-Steagall separation of commercial and investment banking. As banks expand their securities powers, the associated risks have a policy significance because of deposit insurance and the safety net provided to large commercial banks by the federal government. Furthermore, understanding the risks associated with underwriting and dealing can be important in understanding what determines the demand for these services. In this study we examine equity underwriting risk within the context of earlier work on price risk associated with equity offerings and underwriting risks over time.
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Liang, J.N., O’Brien, J.M. (1992). Equity Underwriting Risk. In: Gilbert, R.A. (eds) The Changing Market in Financial Services. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2976-3_4
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DOI: https://doi.org/10.1007/978-94-011-2976-3_4
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