Who Owned Citibank? Familiarity Bias and Business Network Influences on Stock Purchases, 1925-1929

Abstract

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When Uncle Sam introduced Main Street to Wall Street: Liberty Bonds and the transformation of American finance

“…Our results also contribute to the literature on the participation of ordinary households in securities markets in the 1920s (e.g., Warshaw, 1924;Means, 1930;Edwards, 1938;Haven, 1940;Friend et al, 1958Friend et al, , 1967Calomiris, 1995Calomiris, , 2002Baskin and Miranti, 1997;Calomiris and Raff, 1995;Mitchell, 2007;O'Sullivan, 2007O'Sullivan, , 2016Ott, 2011;Rutterford and Sotiropoulos, 2017;and Calomiris and Oh, 2018). Several of these works have argued that the liberty loan campaigns created the preconditions for the proliferation of securities ownership over subsequent years.…”

When Uncle Sam Introduced Main Street to Wall Street: Liberty Bonds and the Transformation of American Finance

“…Our results also contribute to the literature on the participation of ordinary households in securities markets in the 1920s (e.g., Warshaw, 1924;Means, 1930;Edwards, 1938;Haven, 1940;Friend et al, 1958Friend et al, , 1967Calomiris, 1995Calomiris, , 2002Baskin and Miranti, 1997;Calomiris and Raff, 1995;Mitchell, 2007;O'Sullivan, 2007O'Sullivan, , 2016Ott, 2011;Rutterford and Sotiropoulos, 2017;and Calomiris and Oh, 2018). Several of these works have argued that the liberty loan campaigns created the preconditions for the proliferation of securities ownership over subsequent years.…”

Interbank Connections, Contagion and Bank Distress in the Great Depression

“…The absence of a relationship between due to banks/total deposits and the liquidity ratio does not necessarily mean that correspondent banks were unresponsive to network liquidity risk, however, because banks could mitigate such risk by holding either more capital or more liquidity. The use of greater equity capital as the means of managing liquidity risk likely reflects the unusually low cost of raising equity in the pre-Depression period which made the raising of additional equity the generally preferred tool for absorbing increased risk (see Calomiris and Wilson 2004;Calomiris and Oh 2018).…”