the interbank market. Using a simple network structure, it shows that if there is a non-zero bailout probability, banks …

default { bailout, where government provides capital; bail-in, using private-sector funds; and no regulatory intervention … distress with sufficient capital remaining. Empirical tests of changes in capital behavior from the pre-crisis bailout period …

– helped attenuate bailout-related moral hazard. Banks were averse to these appointments – the empirical distribution of missed …

attenuate bailout-related moral hazard. Banks were averse to these appointments - the empirical distribution of missed payments …

financial system, lower the bail-out costs, and decrease the bail-out cost volatility. Application: This new concept of soft …

We develop a model of bailout stigma in which accepting bailouts may signal firms' financial troubles and worsen … subsequent financing conditions. Bailout stigma can lead to low or even no take-up of otherwise attractive bailout offers, the … improving their subsequent funding conditions. Secret bailouts may not eliminate bailout stigma, but secrecy accompanied by …

We study optimal bailout policies in the presence of banking and sovereign crises. First, we use European data to …