Featured Events

Finance Research Seminar: Michael Weber
April 3, 2017 -
10:00am to 12:00pm

Finance Seminars, Michael Weber, University of Chicago, EUA.

Past Events

Partner conference in Chile after the International Conference on Small Business Finance in Rio
December 12, 2016 - 12:00am

Santiago Finance Workshop, December 12-13, 2016

Call for Papers (link)

International Conference on Small Business Finance in Rio 2016
December 8, 2016 - 12:30pm to December 9, 2016 - 6:30pm
FGV, Praia de Botafogo 190, 22250-900 Rio de Janeiro, RJ, Brazil, Auditório Manoel Thompson Motta, 12th Floor
Finance Seminar: Allen N. Berger
December 7, 2016 -
10:00am to 12:00pm
FGV Ebape

Finance Seminars, Allen N. Berger, University of South Carolina, EUA.


Do Bank Bailouts Reduce or Increase Systemic Risk? The Effects of TARP on Financial System Stability


Theory suggests that bank bailouts may either reduce or increase systemic risk. This paper is the first to address this issue empirically, analyzing the U.S. Troubled Assets Relief Program (TARP). Difference-in-difference analysis suggests that TARP significantly reduced contributions to systemic risk, particularly for larger and safer banks located in better local economies. This occurred primarily through a capital cushion channel. Results are robust to additional tests, including accounting for potential endogeneity and selection bias. Findings yield policy conclusions about the wisdom of bailouts, which banks might be the best targets for future bailouts, and the form these bailouts might take.


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