TARP and Other Bank Bailouts and Bail-Ins around the World: Connecting Wall Street, Main Street, and the Financial System sheds light on whether bailing out Wall Street really saves Main Street or the financial system. The book discusses whether or not bailouts are good for the economy and if it is essential to save failing financial institutions by putting taxpayer money at risk. Through careful analysis, the book compares the short-run effects of bailouts to long-term consequences, emphasizing the moral hazard behavior caused by bailouts at different levels and for different agents.
Placing particular emphasis on one of the biggest bailouts of all time, the Troubled Asset Relief Program (TARP), this book covers all bases.
- Presents a theoretically-informed and empirically rich account of bailouts and their implications
- Uses TARP as a case study to paint a complete and balanced picture of bailout programs worldwide
- Illuminates the long run welfare analysis of a bailout program
Economics and finance students (upper-division undergraduates / MBA / PhD), bank executives, regulators, policy makers, financial analysts, researchers, and anyone with a basic knowledge of economics / finance interested in banking, financial crises, and regulatory policy
Part I. Introductory Materials
1. Introduction to Bank Bailouts in General and the Troubled Asset Relief Program (TARP) in Specific
2. Descriptions of the TARP Program and Other Selected Bank Bailouts
3.Theoretical Background on the Determinants of Entry and Exit of Bank Bailouts
4.Theoretical Background on the Effects of Bank Bailouts
Part II. Empirical Evidence on the Determinants and Effects of TARP and other Bailouts
5. Determinants of TARP Capital Injections
6. Determinants of TARP Exit Decisions
7. The Effects of TARP on Recipient Banks’ Valuation
8. Effects of TARP on Bank Market Share and Market Power
9. Effects of TARP on Market Discipline
10. The Effects of TARP on Recipient Banks’ Supplies of Credit
11. Effects of TARP on Real Economic Conditions
12. Effects of TARP on Bank Capital Decisions
13. Effects of TARP on Banks’ Risk-Taking
14. Effects of TARP on Systemic Risk
15. Effects of TARP on Bank Corporate Governance
16. Effects of TARP on Politically Connected Banks’ Performance and Credit Supply
17. Other Effects of TARP on Recipient Banks’ Loan Customers
18. Effects of other Bailouts in the U.S. and other Nations
Part III. Looking Toward the Future
19. What Are the Important Open Research Questions about the Effects of TARP and other Bailouts?
20. Weighing the Social Costs and Benefits of TARP and other Bailouts
- No. of pages:
- © Academic Press 2020
- 1st December 2019
- Academic Press
- Paperback ISBN:
Allen N. Berger is the H. Montague Osteen, Jr., Professor in Banking and Finance and Ph.D. coordinator of the Finance Department, Moore School of Business, and Carolina Distinguished Professor, University of South Carolina; Senior Fellow, Wharton Financial Institutions Center; Fellow, European Banking Center; and Secretary/Treasurer, Financial Intermediation Research Society. He also currently serves on the editorial boards of six professional finance journals. In addition, Professor Berger is past editor of the Journal of Money, Credit, and Banking and has co-edited six special issues of various professional journals and both editions of the Oxford Handbook of Banking. His research covers a variety of topics related to financial institutions. He is co-author of Bank Liquidity Creation and Financial Crises (Elsevier). He has published over 100 professional articles in refereed journals, including papers in top finance journals, Journal of Finance, Journal of Financial Economics, Review of Financial Studies, and Journal of Financial and Quantitative Analysis; top economics journals, Journal of Political Economy, American Economic Review, and Journal of Monetary Economics; and other top professional business journals, Managerial Science and Journal of Business; and over 30 other non-refereed publications. Professor Berger was Senior Economist from 1989 to 2008 and Economist from 1982-1989 at the Board of Governors of the Federal Reserve System. He received a Ph.D. in Economics from the University of California, Berkeley in 1983, and a B.A. in Economics from Northwestern University in 1976.
Moore School of Business, University of South Carolina, Columbia, SC, USA
Raluca A. Roman is an economist at the Federal Reserve Bank of Philadelpha. She joined the Fed in June 2015, following the completion of her Ph.D. in Finance at University of South Carolina. Raluca also holds an M.B.A. with concentration in Finance from University of Bridgeport, and a B.A. in Economics from Alexandru Ioan Cuza University (Romania). Raluca's research areas include a variety of topics related to banking and financial institutions (including bank government bailouts, internationalization, and corporate governance) and corporate finance. She has presented her research and discussed the research of others at various regulatory and finance conferences, is a co-author of two articles in the Journal of Financial and Quantitative Analysis and one in Management Science and has received three awards for her papers at conferences. She also has over 7 years of professional experience in banking and corporate finance and worked for top international organizations like UBS Investment Bank and MasterCard International, where she won various awards.
Federal Reserve Bank of Kansas City, Kansas City, MO, USA