We analyze the longer-term effect of Troubled Asset Relief Program (TARP) funding through the default risk angle. Our … analyses show that both the treatment group (i.e., TARP recipients) and the control group (i.e., banks not receiving TARP funds …) increased their default risk in the post-TARP stage lasting for a decade. Using a difference-in-difference approach, we further …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …