Landier, Augustin; Ueda, Kenichi - Institut d'Économie Industrielle (IDEI), Toulouse … - 2009
We formalize the taxpayer burden implied by various bank restructuring plans. Even assuming minimal frictions, in … needed to persuade shareholders (or bank managers) to accept a change in capital structure. The government’s intervention … aims at preventing systemic effects from a default of an important bank, and thus targets a default rate. Due to different …