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those investors facing losses. The anticipation of such a "bailout" distorts ex ante incentives, leading intermediaries to …
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Die internationale Finanz- und Wirtschaftskrise beeinflusste das Spannungsverhältnis zwischen Solidarität und Wettbewerb in der Europäischen Union in zweierlei Hinsicht. Zum einen drängten die Regierungen der europäischen Mitgliedstaaten darauf, ihre notleidenden Banken (aber auch...
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pre-bailout values, with a partial new equity injection, or an asset buyout. When levels of debt overhang co-vary with … asset purchases with providing the bailout agency Options to buy bank equity, to enhance its capture of rents arising from … post-bailout stakes held by prior inside equity holders of banks. …
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Exploiting the Japanese banking crisis as a laboratory, we provide firm-level evidence on the real effects of bank bailouts. Government recapitalizations result in positive abnormal returns for the clients of recapitalized banks. After recapitalizations, banks extend larger loans to their...
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