We analyze the effects on bank valuation of government policies aimed at shoring up banks’ financial conditions during the 2008–2009 financial crisis. Governments injected into troubled institutions massive amounts of fresh capital and/or guaranteed bank assets and liabilities. We employ...

We employ event study methodology to examine government policies aimed at rescuing banks from the effects of the 2008–2009 financial crisis. Announcements directed at the banking system as a whole were associated with positive cumulative abnormal returns, whereas announcements directed at...

We examine how banking supervisors affect credit at the local level by charging fines to individual banks. Using a macro approach to capture the direct effect on the fined bank and the indirect effect on the other banks operating in the local credit market, we estimate reputational, reallocation...