The joint plan by the U.S. Treasury and the Federal Deposit Insurance Corporation, announced on Monday, October 13, 2008, represented the largest financial transfer from taxpayers to financial institutions in U.S. history. Existing academic studies have analyzed whether this massive state...

In France, mutual banks played a key role during the recent period of consolidation of the banking industry because they acquired many privately listed banks. Our analysis of the acquisition of the private bank Crédit Lyonnais by the mutual bank Crédit Agricole illustrates three findings....

How does competition affect innovation in the banking industry? We use the 1994 Riegle-Neal Interstate Banking and Branching Efficiency Act as a major exogenous shock on U.S. banking industry competition and study its impact on innovation. Addressing this issue is challenging however because...

In this paper, we investigate the extent in which creditor rights protection in bankruptcy induces banks to take more risk, leading to a higher level of systemic risk in the financial system. We apply ∆CoVaR, introduced by Adrian and Brunnermeier (2011), as the measure of systemic risk. Our...

The Capital Purchase Plan (CPP) is one of the main ingredients of the Paulson Plan. In accordance with CPP, U.S. federal agencies invested more than $200 billion in approximately 700 financial institutions between 2008 and 2009. This article examines whether this major public intervention helped...