Edward J. Kane
Boston College, Finance Department, Chestnut Hill, MA 02467
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Edward J. Kane, 87. He passed away on March 2, 2023, in Tucson, Arizona.
The highly cited author of three books and hundreds of academic articles was one of the few economists to foresee the Savings & Loan debacle of the 1980s. Dr. Kane was a man of diverse interests. Inspired by comic books and horror movies, he introduced the now-ubiquitous term Zombie Bank in writing about the S&L crisis.
Dr. Kane earned a BS from Georgetown and a Ph.D. from MIT. He taught at Princeton, Iowa State and Boston College before accepting the Everett D. Reese Chair of Banking and Monetary Economics at the Ohio State University, which he held from 1972 to 1992. He returned to Boston College in 1992, where he served as the first James F. Cleary Professor in Finance until 2009. Although, he retired from that role in 2009 he continued to research and write as a leading economist in the field of banking and financial regulation.
Kane is a past president and fellow of the American Finance Association, a Research Associate of the National Bureau of Economic Research. A founding member of the Shadow Financial Regulatory Committee, he also served for twelve years as a Trustee and member of the Finance Committee of TIAA CREF, consulted for the World Bank and was a Senior Fellow in the FDIC's Center for Financial Research. Much of his recent work was produced with the support of the Institute for New Economic Thinking.
Kane was predeceased by his wife of 54 year, Gloria Verdi. He is survived by his three children and granddaughter as well as his brother and sister.
"Chapter 2: The Illusory Nature of Bank and Regulatory Accounting for Losses in Distressed Banks"
"Implicit and Explicit Norms and Tools of Safety-Net Management"
"Good News and Bad News about Newly Imagined Federal Reserve Credit Allocation Policies"
"Why a V-shaped Recession is a Pipe Dream"
"Comings and Goings of Federal Reserve Instruments and Targets Over Time"
"Repo Madness: Central-Bank Plumbing Gone Awry"
"Double Whammy: Implicit Subsidies and the Great Financial Crisis"
“Europe’s Zombie Megabanks and the Deferential Regulatory Arrangements that keep them in Play”
“Financial Safety Nets: The Good, The Bad, and The Ugly”
“Changing Incentives Facing Financial-Services Regulators,” (1989) Journal of Financial Services Research, 265-274.
“Ethics versus Ethos in US and UK Megabanking”
“A Theory of How and Why Central-Bank Culture Supports Predatory Risk-Taking at Megabanks”
“Ethical Conflicts in Managing the S&L Insurance Mess”
“Tracking Variation in Systemic Risk at US Banks During 1974-2013” (with Armen Hovakimian and Luc Laeven)
“Deposit Insurance Around the World: A Comprehensive Analysis and Database” (with Aslı Demirgüç-Kunt and Luc Laeven)
“How is Jamie Dimon Like a Smoker on an Airplane?” Huffington Post (6/18/15)
“Perspectives on Banking and Banking Crises”
“Confronting Divergent Interests in Cross-Country Regulatory Arrangements,” (2006) Reserve Bank of New Zealand: Bulletin, Vol. 69, No. 2.
Statement on Banking and Banking Regulation (Joint Committee of Inquiry into the Banking Crisis, Linster House, Dublin, Ireland).
“Insurance Contracts and Derivatives that Substitute for them: How and Where Should their Systemic and Nonperformance Risks be Regulated?” Advances in Pacific Basin Business, Economics and Finance, Volume 5, 2017, pp.1 – 17.
“Globalization of the US Financial Safety Net”
“Hair of the Dog that Bit Us: The Insufficiency of New and Improved Capital Requirements”
“Gaps and Wishful Thinking in the Theory and Practice of Central-Bank Policymaking,” in Morten Balling, Ernest Gnan and Patricia Jackson (eds.), States, Banks, and the Financing of the Economy: Monetary Policy and Regulatory Perspectives, SUERF Studies, 2013/3.
"Regulation and Supervision: An Ethical Perspective" in A. Berger, P. Molyneux, and J. Wilson (ed.) Oxford Handbook on Banking, London: Oxford University Press (2nd Edition, 2015).
“Valuing the Conjectural Government Guarantees of FNMA Liabilities,” (with C. Foster) in Proceedings of Conference on Bank Structure and Competition, Chicago: Federal Reserve Bank of Chicago, 1986, pp. 347-368.
“Bankers and Brokers First: Loose Ends in the Theory of Central-Bank Policymaking”
“Variation in Systemic Risk at US Banks during 1974-2010,” (with Armen Hovakimian and Luc Laeven)
“The 2007 Meltdown in Structured Securitization: Searching for Lessons not Scapegoats,” (with Gerard Caprio, Jr. and Aslı Demirgüç-Kunt), World Bank Research Observer, 25, February 2010.
“Safety-Net Losses from Abandoning Glass-Steagall Restrictions,” (with Kenneth A. Carow and Rajesh P. Narayanan), Journal of Money, Credit and Banking, 43 (October 2011), 1371-1398.
“Safety-Net Benefits Conferred on Difficult-to-Fail-and-Unwind Banks in the US and EU Before and During the Great Recession,” (with Santiago Carbo-Valverde and Francisco Rodriguez-Fernandez)
“How to Reform the Credit-Rating Process to Support a Revival of Private-Label Securitization,” (with Richard Herring), Quarterly Journal of Finance, 2(2012).
“Missing Elements in US Financial Reform: A Kübler-Ross interpretation of the inadequacy of the Dodd-Frank Act,” Journal of Banking and Finance, 36 (March 2012).
"Regulatory Arbitrage in Cross-Border Mergers of Banks in the EU", (with Santiago Carbo-Valverde and Francisco Rodriguez-Fernandez), Journal of Money, Credit and Banking, 44 (December, 2012).
"Unmet Duties in Managing Financial Safety Nets" Business Ethics Quarterly, 2, March 2011.
“Redefining and Controlling Systemic Risk” Atlantic Economic Journal, 38, June 2010.
"The Importance of Monitoring and Mitigating the Safety-Net Consequences of Regulation Induced Innovation" Review of Social Economy, 58, June 2010.
"Extracting Nontransparent Safety Net Subsidies By Strategically Expanding and Contracting a Financial Institution’s Accounting Balance Sheet" Journal of Financial Services Research, 35 (December 2009)
"What Lessons Should Japan Learn from the U.S. Deposit Insurance Mess?," Journal of the Japanese and International Economies, 7, 329-355 (1993).
"Incentive Roots of the Securitization Crisis and its Early Mismanagement," Yale Journal on Regulation, Summer 2009.
"Evidence of Improved Monitoring and Insolvency Resolution after FDICIA"
"Ethical Failures in Regulating and Supervising the Pursuit of Safety-Net Subsidies" European Business Organization Law Review, 10 (2009), 185-211.
"Who Should Bear Responsibility for Mistakes Made in Assigning Credit Ratings to Securitized Debt?"
"Incentive Conflict in Central-Bank Responses to Sectoral Turmoil in Financial Hub Countries" in 2009 volume being edited by Douglas Evanoff of the Federal Reserve Bank of Chicago.
"Basel II: A Contracting Perspective," Journal of Financial Services Research, 32, 39-53.
"Connecting National Safety Nets: The Dialectics of Basel II Contracting Process," Atlantic Economic Journal, 35, 399-409.
"Inadequacy of Nation-Based and VaR-Based Safety Nets in the European Union," The North American Journal of Economics and Finance, 17, 375-387.
"Confronting Divergent Interests in Cross-Country Regulatory Arrangements" (chapter in Guidelines for Cross-Border Banking Proceedings, December 2005.
"Can the European Community Afford to Neglect the Need for More Accountable Safety-Net Management?" Atlantic Economic Journal, 34, 127-144.
"Impediments to Fair and Efficient Resolution of Insolvencies in Large Banks and Banking Crises," in Douglas Evanoff and George Kaufman (ed.), Systemic Financial Crises: Resolving large Bank Insolvencies, Singapore: World Scientific, 2005.
"Determinants of Deposit-Insurance Adoption and Design" (With Asli Demirguc-Kunt and Luc Laeven), Journal of Financial Intermediation, 17 (July 2008), pp. 407-38.
"Charles Kindleberger: An Impressionist in a Minimalist World," Atlantic Economic Journal, 33, 35-42.
"How Have Borrowers Fared in Banking Mega-Mergers?" (With Kenneth A. Carow and Rajesh Narayanan), Journal of Money, Credit and Banking, 38, 821-836.
"The Role of Watchdog Institutions in Corporate Governance"
"Financial Regulation and Bank Safety Nets: An International Comparison"
“Alternatives to Blanket Guarantees for Containing a Systemic Crisis,” (with Daniela Klingebiel), Journal of Financial Stability, 1, 31-63.
"Continuing Dangers of Disinformation in Corporate Accounting Reports," Review of Financial Economics, 13, 149-164.
"How Country and Safety-Net Characteristics Affect Bank Risk-Shifting," (with Armen Hovakimian and Luc Laeven) Journal of Financial Services Research, 2003.
“What Kind of Multinational Deposit-Insurance Arrangements Might Best Enhance World Welfare?” Pacific Basin Finance Journal, 2003.
“What Lessons Might Crisis Countries in Asia and Latin America Have Learned from the S&L Mess?,” Business Economics, 38 (January 2003), pp. 21-30.
"Regression Evidence of Safety-Net Support in Canada and the U.S., 1893-1992" (with Barry Wilson), The Quarterly Review of Economics and Finance, 42 (2002), 649-671.
“Using Deferred Compensation to Strengthen the Ethics of Financial Regulation," Journal of Banking and Finance, 26 (September, 2002) 1919-33.
"Deposit Insurance Around the Globe: Where Does it Work?," (with Asli Demirguc-Kunt) Journal of Economic Perspectives 16 (Spring 2002), 175-195.
"Event-Study Evidence of the Value of Relaxing Longstanding Regulatory Restraints on Banks, 1970-2000" (with Kenneth A. Carow), Quarterly Review of Economics and Finance 42 (Summer 2002), 439-463.
"The Dialectical Role of Information and Disinformation in Regulation-Induced Banking Crises," Pacific Basin Finance Journal 8 (2000), pp. 285-308.
"Architecture of Supra-National Financial Regulation," Journal of Financial Services Research, 18:2/3 (2000), 301-318.
"Incentives for Banking Megamergers: What Motives Might Regulators Infer from Event-Study Evidence?" Journal of Money, Credit and Banking, 32, (August 2000, Part 2), 671-701.
"Effectiveness of Capital Regulation at U.S. Commercial Banks, 1985 to 1994," (with Armen Hovakimian), Journal of Finance, Vol. LV, No. 1 (February 2000), 451-468.
"Bank Runs and Banking Policies: Lessons for African Policymakers," (with Tara Rice), Journal of African Economics 9, AERC Supplement2 (2000), 109-144.
"Using Disaster Planning to Optimize Expenditures on Financial Safety Nets," Atlantic Economic Journal, 29, (September 2001), 243-253.
"Financial Safety Nets: Reconstructing and Modelling a Policymaking Metaphor," The Journal of International Trade and Economic Development, 10, (September 2001), 237-273.
"Dynamic Inconsistency of Capital Forbearance: Long-Run vs. Short-Run Effects of Too-Big-to-Fail Policymaking," Pacific Basin Finance Journal 9, 281-299.
"Why Journal Editors Should Encourage the Replication of Applied Econometric Research," Quarterly Journal of Business and Economics 23 (Winter 1984).
“Ethical Conflicts in Managing the S&L Mess,” in Edward J. O’Boyle (ed.), Social Economics: Premises, Findings and Policies, London: Routledge, 1996, pp. 125-144.
"Accelerating Inflation, Technological Innovation, and the Decreasing Effectiveness of Banking Regulation," Journal of Finance, 1981, Vol. 36, No. 2, pp. 355-367.
“Politics and Policymaking: The More Things Change the More they Remain the Same,” Journal of Monetary Economics 6 (1980), 199-211.
"Relevance and Need for International Regulatory Standards," Proceedings of the Brookings-Wharton Conference on Integrating Emerging Market Countries into the Global Financial System.
"Bank Portfolio Allocation, Deposit Variability, and the Availability Doctrine," (with Burton G. Malkiel) The Quarterly Journal of Economics, Vol LXXIX, (February 1965), 113-134.
updated 3/20/2023
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