−Small bank equity premium and bailout insurance is fairly priced for equityholders in that there is no difference between big and …Contrary to public perception and previous literature on public bailout subsidies, we find over the recent 43-year … period equityholders in big banks paid fairly for TBTF bailout insurance in terms of equity returns. In normal (non …

Bank may prevent the worst by acting as creditor of last resort, purchasing loans where otherwise debt default (and … bankruptcy regardinghouse ownership) would occur. This bail-out policy can stabilize the economy and also reduces the loss of …

Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …