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On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011557140
a bank holding insured deposits and issuing non-bail-inable debt and bail-inable Tier1-capital debt? We address this … postponing default; 2) a positive probability of bail-out destroys credibility with dramatic effects on financial risk-taking, to …
Persistent link: https://www.econbiz.de/10012893415
at the expense of taxpayers: the merger-bailout has increased Switzerland’s sovereign credit risk, resulting in an …
Persistent link: https://www.econbiz.de/10014349670
Persistent link: https://www.econbiz.de/10013138295
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This paper develops a formula to numerically estimate the unsubsidized, fair-market value of the toxic assets purchased with Federal Reserve loans. It finds that subsidy rates on these loans were on average 33.9 percent at origination. In contrast, by the 3rd quarter of the 2010, there was on...
Persistent link: https://www.econbiz.de/10013252762
The adoption of the “Bank ... …
Persistent link: https://www.econbiz.de/10012436955
in the form of the Bank Recovery and Resolution Directive. The paper discusses the anti-bailout objective of the two … governing bank resolution actions: the Commission's norms on state aids in the banking sector as reflected in the Banking …
Persistent link: https://www.econbiz.de/10012963737
anticipation of this bailout undermines a bank's private incentive to impose a bail-in. In the resulting equilibrium, bail-ins are …We study the interaction between a government's bailout policy and banks' willingness to impose losses on (or \bail in …
Persistent link: https://www.econbiz.de/10012418049
the 2008 Troubled Asset Relief Program (TARP). The simulation results show that a bank with a higher bailout belief takes …The goal of this paper is to estimate a dynamic model of a bank to explain how bank bailouts exacerbate moral hazard …. In the model, a bank makes an endogenous choice of the risks of its investments and can finance these investments by …
Persistent link: https://www.econbiz.de/10012973967