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This paper presents evidence of banks using accounting discretion to overstate the value of distressed assets. In particular, we show that the stock market applies far greater discounts to a bank’s real estate loans and mortgage-backed securities than are implicit in the book values of these...
Persistent link: https://www.econbiz.de/10004973976
Deteriorating public finances around the world raise doubts about countries’ abilities to bail out their largest banks …
Persistent link: https://www.econbiz.de/10008550325
This paper examines the implications of bank activity and short-term funding strategies for bank risk and return using …-interest income generating activities such as trading increases the rate of return on assets, and it may offer some risk … can offer some risk reduction at commonly observed low levels of non-deposit funding. A sizeable proportion of banks …
Persistent link: https://www.econbiz.de/10005114191