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Government Finances and Banks Bailouts : Evidence from European Stock Markets

Cabrera, Matias - 2017

Using a sample of European banks and a series of events affecting governments' finances, we conduct an event study to examine whether there is a relationship between governments' fiscal difficulties and banks' stock returns. We find a significant reaction of banks' stocks to news concerning...

Persistent link: https://www.econbiz.de/10012970198

The Financial Industry's Plan for Resolving Failed Megabanks Will Ensure Future Bailouts for Wall Street

Wilmarth, Arthur E. - 2016

Persistent link: https://www.econbiz.de/10013003910

On the Need for a Fiscal Backstop to the Banking System

Schoenmaker, Dirk - 2016

In the aftermath of the financial crisis, governments are rightly reducing their exposure to the banking system. Bail-in arrangements should ensure that shareholders and creditors take the first losses. The next line of defence is a resolution fund, which is filled via levies on banks....

Persistent link: https://www.econbiz.de/10013006142

U.S. Bank Structure, Fragility, Bailout, and Failure during the U.S. Financial Crisis

Lu, Wenling - 2016

likelihood of a bank bailout or failure during the late 2000s financial crisis. The empirical results indicate that established … received bailout funds are similar except that holding a large proportion of nonperforming loans reduced the likelihood that a … bank received bailout funds. Overall, these results are consistent with regulators providing bailout funds to banks that …

Persistent link: https://www.econbiz.de/10013008003

Bank Rescues and Bailout Expectations : The Erosion of Market Discipline During the Financial Crisis

Hett, Florian - 2016

spreads, and equity returns. We use our method to analyze the evolution of bailout expectations during the recent financial … crisis. We find that bailout expectations peaked in reaction to government interventions following the failure of Lehman …

Persistent link: https://www.econbiz.de/10013008249

Bank Bailouts, Bail-Ins, or No Regulatory Intervention? A Dynamic Model and Empirical Tests of Optimal Regulation

Berger, Allen N.; Himmelberg, Charles P.; Roman, Raluca A. - 2020

default { bailout, where government provides capital; bail-in, using private-sector funds; and no regulatory intervention … distress with sufficient capital remaining. Empirical tests of changes in capital behavior from the pre-crisis bailout period …

Persistent link: https://www.econbiz.de/10012852290

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

The Effect of Bank Bailouts in the EU

Barucci, Emilio - 2018

The financial crisis renewed the debate on the bailout of financial institutions, questioning the effectiveness of such …

Persistent link: https://www.econbiz.de/10012925194

Bank Bailouts in Europe and Bank Performance

Gerhardt, Maria - 2018

equity ratio, loan quality and bank size are the main determinants of bank bailout involvement. However, the aided banks …

Persistent link: https://www.econbiz.de/10012934952

Bail-in and Bank Funding Costs

Cerasi, Vittoria; Paola, Galfrascoli - 2021

We empirically evaluate the impact of the new resolution policy, the so-called Bank Recovery and Resolution Directive (BRRD) enacted in 2016, on the cost of funding for EU banks. We first measure the change in the spreads of credit default swaps on subordinated and senior bonds issued by EU...

Persistent link: https://www.econbiz.de/10013219592