With the recent stock market frauds in markets around the world such as the Madoff case in the U.S. and the recent … World Bank and the International Corporate Governance Network (ICGN), along with major fund managers, are formulating sets … poor job of policing the complex world of finance and that the greater part of the task will be left to self policing on …

a bailout either if the bank is small in the economy or if the bank is large and the ex ante stability level of the bank …

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 …