Loan Pricing and the Repeal of the Glass-Steagall Act
September 24, 2003
Since the adoption of the Gramm-Leach-Bliley Act of 1999, which eliminated Glass-Steagall limits on affiliations between banks and securities firms, there have been renewed allegations that banks are discounting their loans in order to capture underwriting business for their securities affiliates. This conference will consider an important study by AEI visiting scholar Charles W. Calomiris and Thanavut Pornrojnangkool that throws new light on bank pricing practices when affiliates act as underwriters for securities offerings by commercial borrowers.


