Judging Banks’ Risk by the Profits They Report

This research was conducted while Meiselman was an employee of the U.S. Department of the Treasury. The findings, opinions, and conclusions expressed here are entirely those of the authors and do not necessarily reflect the views or the official positions of the U.S. Department of the Treasury. We are grateful for comments from Viral Acharya, Matthew Baron, Murillo Campello, John Cochrane, Ken French, Robin Greenwood, Randy Krozsner, Daniel Paravisini, Philip Strahan, Raghuram Rajan, Uday Rajan, David Sraer, Jeremy Stein, Rene Stulz, Pietro Veronesi, Vikrant Vig, Vijay Yerramilli, and seminar and conference participants at the AFA meetings, Federal Reserve Bank, Imperial College, LBS Summer Finance Symposium, NBER Summer Institute (Corporate Finance), Office of the Comptroller of Currency, Securities and Exchange Commission, SITE Summer Workshop, SUNY Buffalo, University of California at San Diego, University College London, University of Iowa, Vanderbilt, and Wharton Liquidity Conference. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.