Here is the abstract
Previous studies of
the Panic of 1907 have argued that lax regulation enabled trust companies to
take excessive risks, leading to a loss of confidence and massive runs. These
studies have, however, given relatively little attention to the historical
development of trust companies. This
paper argues that a more historical perspective can lead to a better
understanding of the institutional framework and the actions of trust companies.
Depositors did not lose confidence because of inadequate regulation; depositors
lost confidence in specific trust companies because of false rumors, and
diversity among trust companies hindered cooperation to halt the Panic.
And here is an earlier version on SSRN
Sometimes Bad Things Happen to Good Trust Companies: A Reexamination of the Trust Company Panic of 1907
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