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Financial Stability, Resolution of Systemic Banking Crises and COVID-19 : Toward an Appropriate Role for Public Support and Bailouts

Arner, Douglas W. - 2020

A wide range of approaches has been applied to address banking and other financial crises. The nature of the approach depends on the nature of the crisis, its origins, evolution and context. Systemic banking crises are among the most common and costly to address. The experiences of the three...

Persistent link: https://www.econbiz.de/10012826832

The UBS-Credit Suisse Merger : Helvetia's Gift

Böni, Pascal; Kroencke, Tim-Alexander; Vasvari, Florin P. - 2023

at the expense of taxpayers: the merger-bailout has increased Switzerland’s sovereign credit risk, resulting in an …

Persistent link: https://www.econbiz.de/10014349670

Is size everything?

Antill, Samuel; Sarkar, Asani - 2018

time series and the cross section. TSIZE-implied subsidies increase around the bailout of Continental Illinois in 1984 and …

Persistent link: https://www.econbiz.de/10011894404

Did Connected Hedge Funds Benefit From Bank Bailouts During the Financial Crisis?

Faff, Robert W. - 2019

We examine whether connected hedge funds (i.e. those that are prime-brokerage clients of bailout banks) benefited from … bailout programs initiated in seven countries during the 2007–2009 financial crisis. We find that being connected to a bailout … smaller during the post bailout period, for example, due to the greater risk-taking and higher leverage of such funds …

Persistent link: https://www.econbiz.de/10012906178

Bailouts and Moral Hazard : How Implicit Government Guarantees Affect Financial Stability

Mariathasan, Mike - 2014

The recent crisis has shown that systemically relevant banks in distress are likely to benefit from governmental support. This reduces their downside risk and leads to moral hazard, i.e. to incentives for these banks to assume excessive risks. In this paper we show empirically that implicit...

Persistent link: https://www.econbiz.de/10013049033

Are Banks Too Big to Fail or Too Big to Save? International Evidence from Equity Prices and CDS Spreads

Demirgüç-Kunt, Asli - 2011

Deteriorating public finances around the world raise doubts about countries' abilities to bail out their largest banks. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank stock prices and CDS spreads. Overall, bank stock...

Persistent link: https://www.econbiz.de/10013133399

Financial policy in an exuberant world

Walther, Ansgar - 2020

This paper studies optimal financial policy in a world where the financial sector can become excessively optimistic. I decompose the welfare effects of bank capital regulation to demonstrate the effects of exuberance and its interaction with incentive problems in banking. The optimal policy...