Time to buy or just buying time? The market reaction to bank rescue packages

This paper reviews the market reaction to bank rescue packages announced in six countries between October 2008 and January 2009. The study distinguishes the impact on creditors as seen in the change of CDS spreads from the impact on shareholders as seen in the movement of bank stock prices. Government interventions benefited creditors at the expense of shareholders, with bank CDS spreads narrowing around the announcements in all cases. Despite a brief positive...

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Year of publication:	2009-09-01
Authors:	King, Michael R.
Institutions:	Bank für Internationalen Zahlungsausgleich <Basel>
Subject:	Banking-Theorie \| Aktienkurs \| Finanzkrise \| Banking Crisis

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Extent:	442368 bytes 38 p. application/pdf
Series:	Bank for International Settlement - Working papers BIS Working Paper ; No 288 (2009)
Type of publication:	Book / Working Paper
Language:	English
Classification:	G14 - Information and Market Efficiency; Event Studies ; G18 - Government Policy and Regulation ; G21 - Banks; Other Depository Institutions; Mortgages ; Management of financial services: stock exchange and bank management science (including saving banks) ; Individual Working Papers, Preprints ; Global Resources
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10009138478