th century (Rajan and Zingales, 2003), when some financially verydeveloped countries moved towards bank or state control …

Do shareholders of acquiring companies profit from acquisitions, or do acquiring CEOs overbidand destroy shareholder … value? Answering this question is difficult since the hypotheticalcounterfactual is hard to determine. We exploit merger … winningthe contest, the post-merger performance of the loser allows calculating the counterfactualperformance of the winner …

Cyclicality in the losses of bank loans is important for bank risk management. Because loans have a different risk … default rate and loss given default of bank loans share a cyclical component, related to the business cycle. We infer this … downturns. Our model implies substantial time-variation in banks' capital reserves, and helps predicting the losses. …

A banking union limits international bank default contagion, eliminating inefficient liquidations. For particularly low … moderate moral hazard, as the banking union encourages risk taking by systemic institutions. If banks hold opaque assets, the …

circumstances. The model, which measures additional bank capital required to compensate for fluctuating credit risk, is a novel …

on other banks in the system in the likely case of correlated asset returns, so bank runs elsewhere in the banking system …CoCo’s (contingent convertible capital) are designed to convert from debt to equity when banks need it most. Using a … Diamond-Dybvig model cast in a global games framework, we show that while the CoCo conversion of the issuing bank may bring …