Author : Philippe Aghion
Release : 1998
Genre : Bailouts (Government policy)
Kind : eBook
Book Rating : /5 ( reviews)
Book Synopsis Optimal Design of Bank Bailouts by : Philippe Aghion
Download or read book Optimal Design of Bank Bailouts written by Philippe Aghion. This book was released on 1998. Available in PDF, EPUB and Kindle. Book excerpt: In most recent banking crises bank regulators have been caught off their guard and have been forced to respond to the crisis in a hurry without the support of an institutional or legal framework designed to deal with bank failures. This is in sharp contrast with the non-financial sector, where a detailed and elaborate bankruptcy law governs the process of liquidation or reorganisation of financially distressed firms. In this paper we address the question of how to design a bankruptcy institution for banks that would serve a similar purpose as existing bankruptcy laws for non-financial firms.