We investigate whether saving Wall Street through the Troubled Assets Relief Program (TARP) really saved Main Street during the recent financial crisis. Our difference-in-difference analysis suggests that TARP statistically and economically significantly increased net job creation and net hiring...

I study the relationship between competition in the banking sector and financial fragility. I identify a new “too big to save” channel through which increased competition amplifies fragility in the banking system. In equilibrium, a more competitive banking system will be larger because more...