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Bunkanwanicha, Pramuan - 2020

This paper examines the impact of government bailouts on bank CEOs' careers. Exploiting the Troubled Asset Relief Program (TARP) of 2008, we find that CEOs of banks that received TARP funds temporarily remained in their positions in the years 2008-2010. However, after this period, they were more...

Persistent link: https://www.econbiz.de/10012852361

Evidence on the Troubled Assets Relief Program, Bailout Size, Returns and Tail Risk

Ncube, Mthuli - 2019

market response to the TARP launch. We reject the null hypothesis that the bailout size has no effect on the firm's value … average buy-and-hold return from 2008 Q4 to 2009 Q1 is 42.68% for the 293 sampled banks. Bailout banks perform 5.8% worse than … non-bailout banks. The banks' losses increase significantly from the pre-TARP period to TARP initiation period, suggesting …

Persistent link: https://www.econbiz.de/10012862020

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

When Good Investments Go Bad : The Contraction in Community Bank Lending After the 2008 GSE Takeover

Rice, Tara - 2014

In September 2008, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac were placed into conservatorship and dividend payments on common and preferred shares were suspended. As a result, share prices fell to nearly zero and many banks across the country lost the value of their...

Persistent link: https://www.econbiz.de/10013057066

Between Capture and Discretion – The Determinants of Distressed Bank Treatment and Expected Government Support

Ignatowski, Magdalena - 2015

In this paper, we analyze how sources of political influence relate to the actual regulatory treatment of distressed banks and to the expectation of bank support provided by the government. We assemble a unique dataset that links U.S. banks' sources of influence (e.g., lobbying expenditures,...

Persistent link: https://www.econbiz.de/10013018007

Bank Bailouts and Competition - Did TARP Distort Competition Among Sound Banks?

Koetter, Michael; Noth, Felix - 2015

. Political indicators reveal bailout expectations after 2009, manifested as beliefs about the predicted probability of receiving … was lower, and loan rates were higher for banks with higher bailout expectations. The interest margins of unsupported …

Persistent link: https://www.econbiz.de/10013020652

Bank Bailouts, Interventions, and Moral Hazard

Dam, Lammertjan - 2016

-equations model that specifies the probability of a bailout and banks' risk taking.We identify the effect of expected bailout …-2006. The marginal effect of risk with respect to bailout expectations is 7.2 basis points. A change of bailout expectations by …

Persistent link: https://www.econbiz.de/10012989226

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