This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …

This study investigates if the Troubled Asset Relief Program (TARP) distorted price competition in U.S. banking …. 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 …

We develop a structural model for valuing bank balance sheet components such as the equity and debt value, the value … for the government when the bank is operated by private shareholders including the present value of a possible future … bailout, the bailout value incurred by the government following the abandonment of the private shareholders, and, moreover …

' tightening on bank probabilities of default is positive albeit statistically insignificant, suggesting that risk-taking may crowd …

gambling for resurrection, the risk-taking is driven by large and less profitable banks. The net impact on bank probabilities …

shock caused by a large-bank failure in conjunction with detailed data on interbank exposures. First, we find robust … evidence that higher interbank exposure to the failed bank leads to large deposit withdrawals. Second, the magnitude of …

. To the extent that sovereign default causes bank losses also independently of their holding of domestic government bonds …

banks and to the expectation of bank support provided by the government. We assemble a unique dataset that links U.S. banks … regulatory or government institutions) to bank financial data, actual bank supervisory actions, and market-inferred expected … well as for the expectation of support regardless of bank distress. Several conditions increase the effectiveness of …