This paper examines the negative externalities that may occur when a large bank fails, describes the nature of those … directed first at closing institutions promptly, reforming bankruptcy statutes to admit special procedures for handling bank …

anticipation of this bailout undermines a bank's private incentive to impose a bail-in. In the resulting equilibrium, bail-ins are …We study the interaction between a government's bailout policy and banks' willingness to impose losses on (or \bail in …

This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis …. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and …

a bailout either if the bank is small in the economy or if the bank is large and the ex ante stability level of the bank …In a global game, I show that creditor bailins, when well-designed, can attain the exact same level of bank stability …

contrast, bailout policies are centralized only when international spillovers from cross-border bank ownership are strong, and … externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory decision of … which banks are to be shut down before they can go bankrupt, and (ii) a loss allocation – or bailout – decision of who pays …