Outside Lending in the NYC Call Loan Market

Jon Moen () and Ellis Tallman

No 1408, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: Before the Panic of 1907 the large New York City banks were able to maintain the call loan market?s liquidity during panics, but the rise in outside lending by trust companies and interior banks in the decade leading up the panic weakened the influence of the large banks. Creating a reliable source of liquidity and reserves external to the financial market like a central bank became obvious after the panic. The lack of a lender of last resort for investment banks engaged in bank-like activities during the crisis of 2007-09 revealed a similar need for an external liquidity source.

Keywords: Bank panic; stock market; credit rationing; rehypothecation (search for similar items in EconPapers)
JEL-codes: G01 N21 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2014-08-27
New Economics Papers: this item is included in nep-ban, nep-cfn and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-201408 Persistent link
https://www.clevelandfed.org/-/media/project/cleve ... -loan-market-pdf.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:1408

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-201408

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().