In the banking industry, it is highly desirable to identify potential bank failure or high-risk banks. Successful early warning systems (EWS) would provide capabilities to avoid adverse financial repercussions and a massive bail out costs for the failing banks. Very often, these failures are due to financial distress. Various traditional statistical models have been used to study failures of fi...

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Submarine slope failures are a likely cause for tsunami generation along the East Coast of the United States. Among potential source areas for such tsunamis are submarine landslides and margin collapses of Bahamian platforms. Numerical models of past events, which have been identified using high-resolution multibeam bathymetric data, reveal possible tsunami impact on Bimini, the Florida Keys, a...

Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded offi cial Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not necessarily those of the Federal Reserve Ban...

We investigate earnings management (EM) behaviour at failed banks by examining the intensity and direction of EM around FDIC-insured commercial bank failures. Our empirical analysis indicates that failing engage in to a significantly greater extent than non-failing banks. results show banks’ discretion over loan loss provisions ranges from aggressive (upwards EM) conservative (downwards EM).

This paper tests the influence of regulatory capital guidelines on the link between banks’ loan loss reserve decisions in 2007 and the risk of bank failure during the 2008-2009 economic crisis. Our primary finding is that larger loan loss reserve increases in 2007 are associated with an increased risk of bank failure in 2008-2009, but only for banks that are allowed to add back loan loss reserv...