According to the Bank Recovery and Resolution Directive (BRRD), introduced as a lesson from the recent financial crisis …, the losses a failing bank incurred should generally be borne by its investors. Before a minimum bail-in has occurred … financial stability. This policy letter argues that in case of the Italian Bank Monte dei Paschi di Siena (MPS), which the …

Modern bank management comprises both classical lending business and transfer of asset risk to capital markets through … securitization. Sound knowledge of the risks involved in securitization transactions is a prerequisite for solid risk management … CDO-investors. Our findings can be used to explain major stylized facts observed in credit markets. -- Modern bank …

Modern bank management comprises both classical lending business and transfer of asset risk to capital markets through … securitization. Sound knowledge of the risks involved in securitization transactions is a prerequisite for solid risk management …

/08 ; Bank Regulation ; First Loss Position ; Rating Process ; Securitization ; Transparency …Securitization is a financial innovation that experiences a boom-bust cycle, as many other innovations before. This … paper analyzes possible reasons for the breakdown of primary and secondary securitization markets, and argues that …