that receive a small recapitalization relative to their capital shortfall reduce lending and shrink assets. These results … between 2000 and 2013. Controlling for market implied capital shortfall of banks, we find that banks that receive a … sufficiently large recapitalization increase lending, attract more deposits and clean up their balance sheets. In contrast, banks …

We empirically examine the Capital Purchase Program (CPP) used by the US government to bail out distressed banks with … equity infusions during the Great Recession. We find strong evidence that a feature of the CPP - the government's ability to …