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The recent financial crisis has led to a major debate about fair-value accounting. Many critics have argued that fair-value accounting, often also called mark-to-market accounting, has significantly contributed to the financial crisis or, at least, exacerbated its severity. In this paper, we...
Persistent link: https://www.econbiz.de/10010303680
The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are devising new liquidity standards with the aim of making the financial system more stable and resilient. In this paper, the authors analyse the impact of liquid asset holdings on bank...
Persistent link: https://www.econbiz.de/10010280016
bankruptcy for qualified financial contracts (QFCs) such as derivatives and repurchase agreements, particularly those held by … systemically important major dealer banks. Under current U.S. bankruptcy law, these contracts are exempted from the automatic stay …
Persistent link: https://www.econbiz.de/10009504439
share ownership. Furthermore, creditor control rights during bankruptcy (through debtor-in-possession financing and large … stay until filing), the median incumbent does not reduce his stock ownership as the firm approaches bankruptcy …
Persistent link: https://www.econbiz.de/10009625392
When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...
Persistent link: https://www.econbiz.de/10010353293
We present a dynamic structural model of subprime adjustable-rate mortgage (ARM) borrowers making payment decisions taking into account possible consequences of different degrees of delinquency from their lenders. We empirically implement the model using unique data sets that contain information...
Persistent link: https://www.econbiz.de/10011499436
Recent empirical legal scholarship on the consumer bankruptcy system has uncovered a marked rise in the proportion of … elder Americans filing for relief under the Bankruptcy Code. But these studies have not probed the reasons behind that rise … Consumer Bankruptcy Project (CBP), the largest national sample of consumer debtors in this country, which he uses to explore …
Persistent link: https://www.econbiz.de/10013133005
We develop a model of neural networks to study the bankruptcy of U.S. banks. We provide a new model to predict bank … defaults some time before the bankruptcy occurs, taking into account the specific features of the current financial crisis …
Persistent link: https://www.econbiz.de/10013135648
bankruptcy proceedings in the United States. Discharge rules in United States are inclined towards preserving the economic …
Persistent link: https://www.econbiz.de/10013140042
Early warning models are among the most utilized developments in finance. A good early warning model can predict with a high degree of accuracy the likelihood that a healthy company will either go bankrupt or become financially distressed. B2B companies supply products are now global. This paper...
Persistent link: https://www.econbiz.de/10013116863