Paulson's Gift
We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus-day weekend. We estimate that this intervention increased the value of banks' financial claims by $131 billion at a taxpayers' cost of $25 -$47 billions with a net benefit between $84bn and $107bn. By looking at the limited cross section we infer that this net benefit arises from a reduction in the probability of bankruptcy, which we estimate would destroy 22% of the enterprise value. The big winners of the plan were the three former investment banks and Citigroup, while the loser was JP Morgan
Year of publication: |
2010
|
---|---|
Authors: | Veronesi, Pietro |
Other Persons: | Zingales, Luigi (contributor) |
Publisher: |
[2010]: [S.l.] : SSRN |
Subject: | Bankenkrise | Banking crisis | Wohlfahrtsanalyse | Welfare analysis | Bankenliquidität | Bank liquidity | Öffentliche Sozialleistungen | Social security benefits |
Saved in:
freely available
Extent: | 1 Online-Ressource (68 p) |
---|---|
Series: | NBER Working Paper ; No. w15458 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2009 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013150433