-equations model that specifies the probability of a bailout and banks’ risk taking.We identify the effect of expected bailout …-2006. The marginal effect of risk with respect to bailout expectations is 7.2 basis points. A change of bailout expectations by …

financial sector is intimately involved in the design of bailout packages; elsewhere it chooses to remain at arm's length. Such … design of bailout packages in favor of the industry. She demonstrates that financial institutions were most powerful in those … power to remain collectively inactive, she argues, has had important consequences for bailout arrangements and ultimately …

sheets. We find that a distressed bank bailout, which is subject to restructuring and deleveraging conditions, leads to a …