significantly influencing the risk-taking attitudes of bank managers. Particularly, we intend to substantiate the theory that banks … banking sectors due to a missing ability to monitor bank managers. Our results underline that these problems appear to mislead … bank managers showing an unreasonable risk-taking behavior. In a first stage, we rely on a theoretical model explaining …

This paper develops a model to analyze two different bad bank schemes, an outright sale of toxic assets to a state …-owned bad bank and a repurchase agreement between the bad bank and the initial bank. For both schemes, we derive a critical … transfer payment that induces a bank manager to participate. Participation improves the bank's solvency and enables the bank to …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …

work out units, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current … own cost and recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of … the bank by the government. The risk to taxpayers from this investment would be acceptable, however, once the banks are …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …

deutschen Banken nach Renditen im Ausland und waren daher von der Finanzkrise stärker als Banken anderer Euroländer betroffen …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …