Similar Search Results

Safety-Net Benefits Conferred on Difficult-to-Fail-and-Unwind Banks in the US and EU Before and During the Great Recession

Carbo-Valverde, Santiago - 2011

This paper models and estimates ex ante safety-net benefits at a sample of large banks in US and Europe during 2003 … institutions. Safety-net benefits prove significantly larger for DFU firms in Europe and bailout decisions less driven by asset … size than in the US. We also find that a proxy for regulatory capture helps to explain bailout decisions in Europe. A …

Persistent link: https://www.econbiz.de/10012461870

Evidence of Regulatory Arbitrage in Cross-Border Mergers of Banks in the EU

Carbo-Valverde, Santiago - 2009

Banks are in the business of taking calculated risks. Expanding the geographic footprint of an organization's profit-making activities changes the geographic pattern of its exposure to loss in ways that are hard for regulators and supervisors to observe. This paper tests and confirms the...

Persistent link: https://www.econbiz.de/10012463202

Evidence of Differences in the Effectiveness of Safety-Net Management in European Union Countries

Carbo-Valverde, Santiago - 2008

EU financial safety nets are social contracts that assign uncertain benefits and burdens to taxpayers in different member countries. To help national officials to assess their taxpayers' exposures to loss from partner countries, this paper develops a way to estimate how well markets and...

Persistent link: https://www.econbiz.de/10012464865

Incentive Conflict In Central-Bank Responses to Sectoral Turmoil in Financial Hub Countries

Kane, Edward J. - 2007

National safety nets are imbedded in country-specific regulatory cultures that encompass contradictory goals of nationalistic welfare maximization, merciful treatment of distressed institutions, and bureaucratic blame avoidance. Focusing on this goal conflict, this paper develops two hypotheses....

Persistent link: https://www.econbiz.de/10012465053

Inadequacy of Nation-Based and VaR-Based Safety Nets in the European Union

Kane, Edward J. - 2006

Considered as a social contract, a financial safety net imposes duties and confers rights on different sectors of the economy. Within a nation, elements of incompleteness inherent in this contract generate principal-agent conflicts that are mitigated by formal agreements, norms, laws, and the...

Persistent link: https://www.econbiz.de/10012466499

Can the European Community Afford to Neglect the Need for More Accountable Safety-Net Management?

Kane, Edward J. - 2005

As financial institutions and markets transact more and more cross-border business, gaps and flaws in national safety nets become more consequential. Because citizens of host (home) countries may be made to pay for mistakes made in the home (host) country, Basel's lead-regulator paradigm...

Persistent link: https://www.econbiz.de/10012466813