Banks as Secret Keepers

We thank Tobias Adrian, Fernando Alvarez, Bruno Biais, Paul Beaudry, Ricardo Caballero, Douglas Diamond, John Geanakoplos, Mike Golosov, Jonathan Heathcote, Christian Hellwig, Alessandro Pavan, Enrico Perotti, Andrei Shleifer, Alp Simsek, Jean Tirole, Michael Woodford and seminar participants at Banque de France, Chicago, Chinese University of Hong Kong, Columbia, Commodity Futures Trading Commission, EIEF, Federal Reserve Board, Harvard/MIT Applied Theory Workshop, Hong Kong Monetary Authority, IMF, LBS, MIT, Northwestern, NY Fed, NYU, Rutgers, Toulouse, UBC, Universite de Montreal, Wharton, Yale Cowles Foundation, the SED Meetings at Cyprus, the LUISS Workshop on "Financial Frictions in Macro-Models", the Barcelona GSE Summer Forum on "Financial Intermediation, Risk and Liquidity Management", the ESSET Meetings at Gerzensee, the Sciences Po Paris Workshop on "Macro and International Finance" and the 2013 Summer Workshop at the Chicago Fed for useful comments. The usual waiver of liability applies. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.