Handbook of Financial Intermediation and Banking

CHAPTER 6 Commercial Banks in Investment Banking

Amar Gande

Southern Methodist University

1. Introduction

2. Tradeoffs in Combining Lending and Underwriting

2.1. Costs of Combining Lending and Underwriting

2.2. Benefits of Combining Lending and Underwriting

2.3. Theory

2.4. Empirical Evidence from Debt Underwritings

2.5. Empirical Evidence from Equity Underwritings

2.6. Organizational Form of Underwriting

3. Competitive Effects of Commercial Bank Entry into Securities Underwriting

3.1. Theory

3.2. Empirical Evidence on Commercial Bank Entry in 1989

3.3. Empirical Evidence on the Financial Modernization Act of 1999

4. Conclusion

References

I thank Mitchell Berlin for his thoughtful comments and help in focusing this chapter. Given that the ...