time series and the cross section. TSIZE-implied subsidies increase around the bailout of Continental Illinois in 1984 and …

default { bailout, where government provides capital; bail-in, using private-sector funds; and no regulatory intervention … distress with sufficient capital remaining. Empirical tests of changes in capital behavior from the pre-crisis bailout period …

of bail-outs. Raising public funds to conduct a bail-out entails the deadweight loss of distortionary taxation. Bank bail …

We develop a model of bailout stigma in which accepting bailouts may signal firms' financial troubles and worsen … subsequent financing conditions. Bailout stigma can lead to low or even no take-up of otherwise attractive bailout offers, the … improving their subsequent funding conditions. Secret bailouts may not eliminate bailout stigma, but secrecy accompanied by …

This paper presents a theory that explains why it is beneficial for banks to engage in circular lending activities on … the interbank market. Using a simple network structure, it shows that if there is a non-zero bailout probability, banks …