left-tail risk protection, conditional on a crisis, fully explains this Big−Small bank equity premium “fee” paid in normal … the big bank equity return discount in non- crisis times. Over several economic cycles, there is no abnormal Big …−Small bank equity premium and bailout insurance is fairly priced for equityholders in that there is no difference between big and …

We study lottery behavior in banking stocks and use MAX/MIN to capture loss protection from bank bailout guarantees. We … find that bank lottery preferences lead to lower short-term returns and that regulatory TARP assistance increases the … likelihood of bank lotteryness and risk taking. Lottery-type bank equities are riskier after TARP and exhibit fatter right to …

financial sector through the liability side versus the asset side of bank balance sheets. Our results indicate the importance of …