Joseph T. Keating

English

Research Papers in Economics

M lt b n  h ld n     p n 
 xp n   n  n M  h   n
    ph  . K  t n 
M  h   n h    nl   6  b n  , th  f    t  f
 n   f th  f v   t t       n   p th  S v nth
  d r l     rv     tr  t. Ev n W    n  n,
  th d p   t  t t l n   nl   b  t h lf th  $ 6
b ll  n  n M  h   n, h     ll  v r 600 b n  .
Ill n   ,   th pr  t   ll  n  br n h n , h  
  n  d r bl    r  th n  ,200 b n  . In
M  h   n,  h r  d p   t  t t l  nl    l ttl 
 v r h lf th  d p   t   n Ill n   , th r   r 
r   hl   ,600 br n h  .
A   n  th r  t t  , th   tr  t r   f b n  
 n   n M  h   n     f r  d thr   h th   n 
t r  t  n  f  t t  b n  n  l    nd r    n l
   n     d v l p  nt . And     n  th r
br n h n   t t  , th   tr  t r   f b n  n 
th r  h   l n  b  n   n  ntr t d.      th n  
t nth  f th  b n  , f r  x  pl , h ld t   
th rd   f th  d p   t .
  t  l       n  th r  t t    n r   nt    r ,
  th rd f  t r h         nt  pr   n nt pl  .
S n       ,  h n b n  h ld n     p n   
  r  f r t  ll   d  n M  h   n, 22   lt b n 
h ld n     p n    h v  b  n f r  d.  h  
h v       r d  v r   th rd  f th  b n  .
M  t  f th   xp n   n  f   lt b n 
h ld n     p n    h   b  n  n th     th rn
p rt  f th   t t ,  h r    h  v    n  ntr t  n
 f  nd  tr  h        d p p l t  n  nd  n 
     t   l  t r  n l r    rb n  r   .    rl 
t   th rd   f th  b n        r d b    l 
t b n  h ld n     p n     r   n St nd rd
M tr p l t n St t  t   l Ar     n th   nd  tr  l
   th.  h    b n   h ld  l   t thr   f  rth 
 f th  d p   t   n th     rb n  r   .
M  h   n b n   b    z   nd h ld n     p n   t t   
All b n  
  n    n   lt b n 
h ld n     p n   
  n    n  n  b n 
h ld n     p n   
  p   t   z   l       b r   p   t     b r   p   t     b r   p   t 
(  ll  n
d ll r  
(  ll  n
d ll r  
(  ll  n
d ll r  
$2.  b l.  r   r      , 20.4     , 20.4
$ .0 b l.   $2.  b l. 2 2, 0 .  2 2, 0 . 
$ 00   l.   $ .0 b l. 6 4,  6.  4 2,   .    8  . 
$2 0   l.   $ 00   l.   2,  0.  4  ,4 6.0    6 . 
$ 00   l.   $2 0   l.     ,8  .8  8  ,0 4.     0 .0
$ 0   l.   $ 00   l.  2  ,660.      ,2  .2   20 .0
     th n $ 0   l. 2 8  ,42 .  8   ,4  .0 8  82. 
  t l  6   6, 0 .      24,224.   8 2,   . 
   p   t      f      b r   ,      h ld n     p n    b  d  r     ppr v d thr   h   n   0,    8.
 8	 E  n       r p  t v  M  h   n SMSA 
SMSA   ntr l   t 
 . M      n   rt n Sh r   
M      n     ht 
2. Gr nd   p d 
 .   n  n  E  t   n  n 
4.  l nt
 . S   n  
6.     C t 
 .   tr  t
8. Ann Arb r
 .       n
 0.   ttl  Cr   
  .   rt    K l   z  
SMSA
W    n  n
Ill n   
I
 
  d r l     rv    n   f Ch     
	
  C  nt  d  tr b t  n  f M  h   n b n   
   b r  f b n  
 n    nt 
   b r  f
   nt   
0  
   r 2 24
   r 4 2 
   r 6  
   0   
        4
 6  r   r   
•   tr b t  n     f      b r   ,     .
Eff  t   f r    n l d v l p  nt
M  h   n    f r   r   nd  tr  l z d th n
   t  t t  .    rl    th rd  f n nf r 
  pl    nt     n   n f  t r n     p r d
  th l    th n   f  rth n t  n  d . And f r
  r   f th    n f  t r n    pl    nt     n
th    n r ll  b tt r p   n  pr d  t  n  f
d r bl     d . Ch  fl  b        f th    t 
 nd  tr , f  r   t  f f v   f th   t t   
  n f  t r n    r  r  pr d    d r bl 
   d ,    p r d   th thr     t  f f v 
n t  n  d .
 h   l r   pr p rt  n  f   r  r   n 
    d  n d r bl     d    n f  t r n     
   nt   n l r   p rt f r th    rn n    f
M  h   n   n f  t r n    r  r  b  n   0
p r  nt h  h r th n th  n t  n l  v r   .
  r   p t   n      n M  h   n,     nd  n
th  S v nth    tr  t  nl  t  Ill n   ,     6 p r 
  nt h  h r th n f r th  n t  n  n    6, th 
l t  t    r f r  h  h d t   r   v  l bl . S n  
   0, p r  n l  n     h d  n r    d fr  
$  .2 b ll  n t  $6 .  b ll  n.   r n  th t t   ,
p p l t  n  n r    d  nl  fr   8.    ll  n t 
 .    ll  n,  ll   n  th   t t  t    h  v    n 
t n  d    n   n p r   p t   n    — v n d r 
 n  th     r  th t th    t   nd  tr    ff r d
 n   f  t     t   v r    tb     fr  
r       n.
M  t  f th   nd  tr , h   v r,      n  n 
tr t d  n 24    th rn    nt   .  h  r  t  f th 
 t t —th  Upp r   n n  l   nd th  n rth rn
p rt  f th      r   n n  l —    t ll     nt  ll 
r r l   th l ttl     n       t v t  th t h  
   h b  r n   n   t v t   n th   nd  tr  l
   th. Onl  4 p r  nt  f th  p r  n l  n    
 n M  h   n    f  nd  n th  4  r r l    nt     n
th  n rth,  h r  b   n      t v t     b   d
   tl   n f r  n ,   n n , f r  tr ,  nd th 
t  r  t tr d .
E  ht   t  f t n p  pl   n th   t t  l v   n
   SMSA   pr  d   r    th     th rn p rt  f
th   t t .  h t      r  St nd rd M tr p l t n
St t  t   l Ar    th n  n  n   th r  t t   f th 
S v nth    tr  t. It     l     l r  r pr p rt  n
 f p p l t  n l v n   n SMSA  th n  n  n 
 th r d  tr  t  t t .
  n  rb n  r      d   p  f  6    th rn
   nt    h d b  n d    n t d SMSA   n   60,
 h n thr   f  rth   f th  p  pl   n th   t t 
l v d  n th     r   . S n   th n,   ttl  Cr   
h    l   b  n d    n t d  n SMSA  nd th 
 r   n l t n h v   r  n t   n l d    x   r 
   nt   . An th r M  h   n    nt , M nr  ,
      nt d    p rt  f th    l d , Oh  , SMSA.
In     , th       SMSA       nt d f r 8 
p r  nt  f th  p r  n l  n      n M  h   n.
And b n   h  d   rt r d  n th  SMSA     
   nt d f r 8  p r  nt  f th  d p   t   n th 
 t t .
In        f rth r   n  ntr t d   th n
th  24    nt  r    n.   tr  t,     x    nt 
SMSA   th  l    t  h lf th   t t    p p l t  n,
h     n  d r bl    r  th n h lf th  p r  n l
 n      nd b n  d p   t . It  d p   t ,  n
f  t, t t l  l   t    ht t           h   
d p   t   t b n    n   n  n  E  t   n  n , th 
    nd l r   t SMSA.
 h   h b n  d p   t , l     n      nd
p p l t  n,  r  r    n ll    n  ntr t d,
M  h   n   b n    r  n t. Ov r h lf th  b n  
 n th   t t   r  l   t d  n    n n SMSA    n 
t   ,  h r  d p   t  l  t    r     nt d t 
 nl  $6 b ll  n     n t th  $ 0 b ll  n  n
d p   t  t b n    n SMSA    nt   .     v r,
 v r thr   f  rth   f  ll br n h b n   ff    
 r    n  ntr t d  n SMSA    nt   .  h t th 
d  tr b t  n  f br n h b n   ff     f ll   
th  d  tr b t  n  f  n      nd p p l t  n,
20	 E  n       r p  t v    n  n   n M  h   n   SMSA  
Sh r   f  t t 
   b r  f Sh r   f
d p   t    ntr ll d M  C   b  d  r 
SMSA   p   t  d p   t    n   b n   b  M  C 
(  ll  n (p r  nt  (p r  nt 
d ll r  
  tr  t   ,  6.2  4.      6  8.0
  n  n  E  t
  n  n  2, 0 .8 6.  20   82. 
Gr nd   p d  2,2 0.  6.2 24      .4
 l nt  ,  0.  4.   0   4 . 
K l   z   
  rt       .  2.     6  2. 
Ann Arb r 86 .6 2.4    2  0.6
S   n    0 .0  .      8 . 
M      n   rt n
Sh r   M      n
    ht  488.   .4 6   62. 
      n 4  .8  .  4 0
    C t   2 .  0.       00.0
  ttl  Cr       .6 0.  6   20. 
  t l  0, 26.  8 .4  8  8   4. 
   p   t d t   r      f      b r   ,         lt b n  h ld n     p n    b  d  r    thr   h
  n   0,    8.
 h l  th  d  tr b t  n  f b n   d    n t,   n
b   ttr b t d t   t t  b n  n  l  .
Eff  t   f  t t  b n  n  l  
M  h   n h   b  n   l   t d br n h n 
 t t    n       .   n     n   t bl  h br n h  
 nl   n th          nt     th  r h     ff   
 r   th n 2    l    f th  h     ff   . On 
b n , M  h   n   t  n l  f   tr  t,     x  pt
fr   th   r  tr  t  n b     r ndf th r  l    .
Wh n th    rr nt br n h n  l     nt  nt 
 ff  t  n   4 , M  h   n   t  n l  lr  d  h d
br n h    n   v r l   t   . It      ll   d t 
   p  n   n    h l   t  n.
M  h   n b n  n  l    l   h     h   
 ff    pr t  t  n  l     th t  ll    br n h  
t  b   p n d  nl   n th       t  n    th 
h     ff     r  n t  n  n t  lr  d    rv d b 
  b n   r   br n h. Oth r    , th   nl  p     
bl  l   t  n   r   n  n n  rp r t d  r   .
 h  l   t d     r ph    r    n  h  h
br n h n     p r  tt d h     pt b n   fr  
 xp nd n   n   r    n l  r  t t  b    .   n  
h v  r  p nd d  n t        b th  f  h  h
h v  f  t r d th  d v l p  nt  f l r  
b n  .     ttr  t      n  l   l    t   r    
p    bl , b n   h v  br n h d  xt n  v l 
  th n th   r    th t  r   ll   d. And t 
pr   pt p t nt  ll     d b n    t  , p r 
t   l rl   n  r     h r  h  h p p l t  n
 r  th      xp  t d, th   h v   p n d
br n h    n  n n  rp r t d  r   .  h     f 
f        ld l t r b  pr t  t d  f th   r     r 
t  b       n  rp r t d.
A     h,   t   t  r d b n  n   tr  t r 
h   d v l p d  n M  h   n   SMSA . E  h
SMSA    t p f  d b    f   l r   b n   th t   n 
  d r l     rv    n   f Ch     	 2 M  h   n   lt b n  h ld n 
   p n    b    z  
   b r  f
  b  d  r  b n  
   b r  f
   p n   
    r   r  2
 0    4 0
       
4   6 4
2      
  p   t   z   l   
   b r  f
   p n   
$  b ll  n  r   r   
$  b ll  n t  $4.  b ll  n  
$  b ll  n t  $2.  b ll  n  
$ 00   ll  n t  $   .    ll  n  
$ 00   ll  n t  $4  .    ll  n  
     th n $ 00   ll  n  
   p   t d t      f      b r   ,        lt  
b n  h ld n     p n    b  d  r     ppr v d
thr   h   n   0,    8.
tr l    t  f th  d p   t   nd   l r  r n  b r
 f    ll r b n   th t d v d  th  r    n n 
d p   t .
Wh n th  l    l t r  r p  l d th   t t   
l n  t nd n  pr h b t  n     n t M  h   n
  rp r t  n    n n  b n   t   ,  p n n  th 
    f r th   r  t  n  f   lt b n  h ld n 
   p n   , b n     r    v n        r  nd
th   t t    r  tr  t v  br n h n  l  .  hr   h
h ld n     p n   rr n    nt , th      ld
 xp nd th  r   rv     r      th r b   h rt r 
 n  n   b n    r b       r n   x  t n  b n  
b   nd th  2    l  l   t  f th  br n h n 
l  . Al  ,   n    b rb   h r  b n  n   f 
f     h d b  n pr t  t d fr      p t t  n
b  th  h     ff    r l     ld n   b   nt r d
thr   h th   h rt r n   f n     b  d  r 
b n  .
  t  h l   h n     n th  l   pr v d n 
f r h ld n     p n     r  t d th     n  f r
  pr v n  b n     p t t  n, th  n   l  
 l     v  h ld n     p n         n   f
r d   n     p t t  n.         r n   n  x 
  t n  b n   n     r  t  h r  th     p n 
 lr  d    ntr ll d   b n , h ld n     p n   
   ld r d    th   h       p n t  th  b n  n 
p bl  . W th th     nd  f  xp n   n, th 
n  b r  f    p t t r     ld b  r d   d
 nd th    n  ntr t  n  f b n  n  r    r   
 n r    d.
A  th  l   p t  n  l   t  n   th r th 
n  b r  f b n    b  d  r         p n    n
  n  r th      nt  f d p   t   t   n   ntr l,
     b n  h ld n     p n    h v   x 
p nd d  t t   d   h l   th r  h v    n  n 
tr t d th  r  xp n   n  ff rt   n   r  t  r   
th    lr  d    rv d, b t  h r   ntr  b 
br n h n      pr h b t d.
Eff  t   f   lt b n  h ld n     p n   
 h  l  d b n    f M  h   n   22   l 
t b n  h ld n     p n    r n     n  th 
l r   t  n th   t t .   lf  f th   h ld d p   t 
 f   r  th n $2 0   ll  n. S v nt  n  r   n
SMSA .
M lt b n  h ld n     p n    h v     
   r d  2  th r  x  t n  b n  , h lf  f th  
 l    n SMSA . And th   h v   h rt r d   
n   b n  ,  ll b t f v   f th    l    n SMSA .
 hr   f fth   f  ll   b  d  r     f   l 
t b n  h ld n     p n     r   n t n SMSA ,
th   n     nt        n  r   b  n  th   nl 
 n  th t   lt b n  h ld n     p n    h v 
n t  nt r d.
 h   h    t  f th   xp n   n h   b  n
 h r  th  d   nd f r b n  n    rv       
 tr n   t, thr      p n      ntr ll n    
b n    p r t   x l   v l   n th  Upp r   n n 
  l .      th r    p n   ,  n   n K l   z  
 nd  n   n   tr  t, h v   xp nd d  nt  th 
Upp r   n n  l  thr   h th         t  n  f
  x  x  t n  b n  .
S n     lt b n  h ld n     p n    h v 
b  n  ll   d  n M  h   n,   d  n  rd tr nd
 n th  n  b r  f b n   h   b  n r v r  d b t
th    n  ntr t  n  f b n  n  r    r    h  
 n r    d.  hr   h   d    8, th  n  b r  f
b n   h d  n r    d b   4  h l  th  n  b r
 f  nd p nd nt b n  n   r  n z t  n  h d
dr pp d b    .
22	 E  n       r p  t v     ntr nd  n n  b r  f M  h   n
b n   r v r  d b    lt b n 
h ld n     p n   
n  b r  f b n  
 00
,r    ,   b r   
4 0
400
  0
 00 —
  
  4     0        60   6     0        80
A        d r l     rv    n   t d   f
h ld n     p n  d v l p  nt   n M  h   n
 h   d th t th   xp n   n  f   lt b n 
h ld n     p n    h d b  n   nf n d
pr   r l  t  th   h rt r n   f n   b n    n
  r  t   lr  d    rv d b  th  h ld n      
p n   r t  th         t  n  f  x  t n  b n    n
n     r  t .    ttl      h d b  n   d   f th 
pr    p t t v   lt rn t v   f  h rt r n  n  
b n    n   r  t   h r  th  h ld n     p n 
    n t  lr  d  r pr   nt d.
 h  pr  r  xp n   n d d n t  n r     th 
n  b r  f    p t n  b n   r  n z t  n   n  
  r  t n r d d  t     d  t l   h n   th 
 tr  t r   f th  l   l   r  t (    ll 
     r d b  th  d  tr b t  n  f   r  t  h r  
   n     p t n   r  n z t  n  .
 h     nd  f  xp n   n     t ll    n   n. Of
 0  b n        r d b    lt b n     p n   
thr   h   n     8 ( x l d n  l  d b n   , 2 
  r  n   b n    h rt r d  n   r  t   lr  d 
  rv d b  th  p r nt    p n   nd  8   r 
 x  t n  b n        r d  n n     r  t .
 h  n  l   h rt r d b n   h v   ll b  n
   d         n   r  nd th   t t    h     f 
f    pr t  t  n r l . Alth   h    t   r 
h  h r f r  t rt n    n   b n  th n f r  p n 
    r  nf r  t  n  n th  d v l p  nt  f   lt b n 
h ld n     p n     n M  h   n thr   h A    t   ,    ,
      n   M. G  d  n, "  ld n     p n 
d v l p  nt   n M  h   n,"     n    C nd t  n ,
O t b r     .
 n    br n h, th  r p d  r  th  f        b 
 rb  h     d   ntr    th   n   b n  f    bl .
 h   8  x  t n  b n        r d  n n  
  r  t  h v   ll   d M  h   n   l r   t
b n  n   r  n z t  n  t   xp nd b   nd
th  r   n  rb n   r  t   nt   th r  rb n
  r  t   n th     th rn p rt  f th   t t .
 h  f v  l r   t   lt b n  h ld n      
p n    h  d   rt r d  n   tr  t h v     
   r d b n    n   tr p l t n b n  n 
  r  t     h      n  n , Gr nd   p d , Ann
Arb r, M      n,  nd     C t . Exp n   n
 nt  th     th r   tr p l t n  r       ld
h v  b  n   p    bl    th  t th  h ld n 
   p n  f r   f  r  n z t  n.
        ,   lt b n  h ld n     p n   
 n Gr nd   v n  nd Gr nd   p d  h v     
   r d b n    n th    tr  t   r  t.  h      
p n   n Gr nd   v n h    l     n   nt  th 
 l nt   r  t,    h        p n  b   d  n    
C t . A  l nt b   d    p n  h    nt r d th 
  n  n    r  t. A K l   z      p n  h  
 nt r d   n  n , M      n,  nd Ann Arb r.
And   M dl nd    p n  h    nt r d th    t 
tl  Cr    SMSA.
M r   ntr     nt  n     r  t    th n  
b n      ld h v    pr v d th     p t t v 
 tr  t r   f b n  n   n M  h   n,   v n  th 
p bl     r   lt rn t v     th  t  n r    n 
th    n  ntr t  n  f d p   t . I n th  l  t thr  
   r ,   lt b n  h ld n     p n    h v 
b   n     n    r   ntr    th t  n r    
 lt rn t v  .      d    8, n n    lt b n 
h ld n     p n    h v   nt r d t n n  
  r  t    th  6 n  l   h rt r d b n  .   n
 f th    b n   h v  b  n  h rt r d   n  
S pt  b r     .
 h  t   l r   t   lt b n  h ld n      
p n   , b th b   d  n   tr  t, h v   nt r d
th  K l   z     r  t   th n   b n  ,  nd
 n  h    l    nt r d th   l nt   r  t. C   
p n    b   d  n K l   z   h v    t bl  h d
n   b n    n th  Gr nd   p d   nd   ttl 
Cr    SMSA . A    p n   n Gr nd   p d 
h    nt r d M      n   th   n  l   h r 
t r d b n .
Exp n   n  f   lt b n  h ld n      
p n   , th n, h   r   lt d    nl   n l r  ,
 rb n b n    nt r n   th r SMSA  b   nd
th  2    l  l   t  f th  br n h n  l    nd
  d r l     rv    n   f Ch     	 2   r  t  n   f   lt b n  h ld n 
   p n     l  htl   n r    
  n  ntr t  n  f M  h   n d p   t 
    l t v  p r  nt  f  t t  d p   t 
 00
80
60
40
20
0	  	  0	   
l r   t b n  n   r  n z t  n 
 r     f th  r   n SMSA  th t   r  pr v    l 
 l   d t  th  . M lt b n  h ld n      
p n    h v   l   n t d  2 b n   lt rn t v    n
thr   SMSA ,  h l  b  n  d r  tl  r  p n  bl 
f r     n t n     f  n t  l  ntr   nt  t n SMSA ,
 ll  f  h  h    ld h v  b  n pr  l d d  n 
d r th  br n h n  l   .
 h   nfl  n    f M  h   n   l r   b n  
    r   n     th   xp n   n  f   lt b n 
h ld n     p n    h    n r    d th  n  b r
 f   tr p l t n b n  n    r  t   n  h  h
th    b n      p t   nd h        d  
d  l n   n th  n  b r  f  nd p nd nt b n  
 n M  h   n. A  th   tr nd   nt n   ,
M  h   n   b n  n   tr  t r   pp  r  t  b 
 v lv n  t   rd  h t      t  ll     t t   d 
br n h n   t t ,  h r    f   l r   b n  
   p t    th    h  th r  n  l   t  v r     
j r b n  n    r  t.
24	 E  n       r p  t v  

Multibank holding company expansion in Michigan

http://www.chicagofed.org/digital_assets/publications/economic_perspectives/1978/ep_sep_oct1978_part3_keating.pdf

Multibank holding company expansion in Michigan

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Research Papers in Economics