implementations of the funds concentration effect and the corresponding discriminatory bailout scheme: “random bailout“ and “bailout …

We analyze the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …

Bank bailouts are not the "one-shot" events commonly described in the literature. These bailouts are instead dynamic …