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This paper examines government policies aimed at rescuing banks from the effects of the financial crisis of 2008-2009. Governments responded to the crisis by guaranteeing bank assets and liabilities and by injecting fresh capital into troubled institutions. We employ event study methodology to...
Persistent link: https://www.econbiz.de/10013068754
of bail-outs. Raising public funds to conduct a bail-out entails the deadweight loss of distortionary taxation. Bank bail …
Persistent link: https://www.econbiz.de/10011978809
On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011557140
We show that market discipline, defined as the extent to which firm specific risk characteristics are re ected in market prices, eroded during the recent financial crisis in 2008. We design a novel test of changes in market discipline based on the relation between firm specific risk...
Persistent link: https://www.econbiz.de/10010226557
sovereign default -- a de facto bailout. Consistent with this, the likelihood a defaulting sovereign is granted an IMF loan is …
Persistent link: https://www.econbiz.de/10012838768
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 …
Persistent link: https://www.econbiz.de/10012906178
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
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
The actual economic and financial turmoil calls for new bailout policies to enable the governments to rescue the … bailout policies; the Capital Purchase Program (CPP) and the Supervisory Capital Assessment Program (SCAP) have different key …
Persistent link: https://www.econbiz.de/10013061374
those investors facing losses. The anticipation of such a "bailout" distorts ex ante incentives, leading intermediaries to …
Persistent link: https://www.econbiz.de/10008746936