The corporate governance of banks

The study argues that commercial banks pose unique corporate governance problems for managers and regulators as well as for claimants on the banks' cash flows, such as investors and depositors. The authors support the general principle that fiduciary duties should be owed exclusively to shareholders. However, in the special case of banks, they contend that the scope of the fiduciary duties and obligations of officers and directors should be broadened to include creditors. In particular, the authors call on bank directors to take solvency risk explicitly and systematically into account when making decisions or else face personal liability for failure to do so.Bank management ; Bank supervision ; Corporate governance ; Stockholders

Hierarchical modelling of temperature and habitat size effects on population dynamics of North Atlantic cod

Understanding how temperature affects cod (Gadus morhua) ecology is important for forecasting how populations will develop as climate changes in future. The effects of spawning-season temperature and habitat size on cod recruitment dynamics have been investigated across the North Atlantic. Ricker and Beverton and Holt stock–recruitment (SR) models were extended by applying hierarchical methods, mixed-effects models, and Bayesian inference to incorporate the influence of these ecosystem factors on model parameters representing cod maximum reproductive rate and carrying capacity. We identified the pattern of temperature effects on cod productivity at the species level and estimated SR model parameters with increased precision. Temperature impacts vary geographically, being positive in areas where temperatures are <5°C, and negative for higher temperatures. Using the relationship derived, it is possible to predict expected changes in population-specific reproductive rates and carrying capacities resulting from temperature increases. Further, carrying capacity covaries with available habitat size, explaining at least half its variability across stocks. These patterns improve our understanding of environmental impacts on key population parameters, which is required for an ecosystem approach to cod management, particularly under ocean-warming scenarios. Key words: carrying capacity , cod , hierarchical models , North Atlantic , temperature , uncertaint

Realization of a Resonant Fermi Gas with a Large Effective Range

We have measured the interaction energy and three-body recombination rate for a two-component Fermi gas near a narrow Feshbach resonance and found both to be strongly energy dependent. Even for deBroglie wavelengths greatly exceeding the van der Waals length scale, the behavior of the interaction energy as a function of temperature cannot be described by atoms interacting via a contact potential. Rather, energy-dependent corrections beyond the scattering length approximation are required, indicating a resonance with an anomalously large effective range. For fields where the molecular state is above threshold, the rate of three-body recombination is enhanced by a sharp, two-body resonance arising from the closed-channel molecular state which can be magnetically tuned through the continuum. This narrow resonance can be used to study strongly correlated Fermi gases that simultaneously have a sizeable effective range and a large scattering length.Comment: to appear in Phys. Rev. Let

Bid distributions of competing agents in simple models of auctions

Models of auctions or tendering processes are introduced. In every round of bidding the players select their bid from a probability distribution and whenever a bid is unsuccessful, it is discarded and replaced. For simple models, the probability distributions evolve to a stationary power law with the exponent dependent only on the number of players. For most situations, the system converges towards a state where all players are identical. A number of variations of this model are introduced and the application of these models to the dynamics of market makers is discussed. The effect of price uncertainty on bid distributions is presented. An underlying market structure generates heterogenous agents which do not have power law bid distribution in general

All-Optical Production of a Degenerate Fermi Gas

We achieve degeneracy in a mixture of the two lowest hyperfine states of $^6$Li by direct evaporation in a CO$_2$ laser trap, yielding the first all-optically produced degenerate Fermi gas. More than $10^5$ atoms are confined at temperatures below $4 \mu$K at full trap depth, where the Fermi temperature for each state is $8 \mu$K. This degenerate two-component mixture is ideal for exploring mechanisms of superconductivity ranging from Cooper pairing to Bose condensation of strongly bound pairs.Comment: 4 pgs RevTeX with 2 eps figs, to be published in Phys. Rev. Let