Bailout Research Papers - Academia.edu (original) (raw)

The economic and financial history of Greece offers interesting in- sights into the current worldwide economic crisis. In the nineteenth, twentieth and twenty-first centuries, Greece went through a series of financial disasters due to external factors and to policies that failed to take fiscal stability into account, insofar as they relied heavily on foreign loans. These, in many cases, led to real bankruptcies. This article compares the attempted bailout by a British bank in 1893 with the salvage operation of 2010 that avoided the technical bank- ruptcy of Greece. Although the outcomes differed, owing to sharply different geopolitical and geo-economic contexts and to the amount of money committed to these financial operations, in both cases Greece relied on Europe to avoid impending financial disaster.

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- Economic History, European Studies, Economics, Banking

The recent bailout of Invest Bank of Sharjah, UAE was a relatively discreet and undramatic affair. Capital and liquidity support were provided by the Sharjah Government and the Central Bank respectively after real-estate and construction asset quality pressures drove severe losses. Economic patriotism, as well as sector challenges around asset quality, growth, technology, regulatory and compliance costs are already driving consolidation and-like the Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank deal-are made easier by common state shareholdings. For Invest Bank however, the reported merger failed to materialise and as per historical norms, the government stepped in-a theme incongruent with the Basel 3 themes of debt bail-ins. This note provides insights into ongoing M&A drivers, credit events and GCC government support dynamics.

- by Khalid F Howladar
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- Banking, Risk Management, Islamic Finance, Banks and credit markets

The United States actually has a long and rich tradition of nationalizing private enterprise, especially during times of economic and social crisis. Importantly, this approach has often been deployed when private companies are hindering national efforts to address a crisis (either through obstruction, incompetence, or incapacity). This history of nationalization, along with other robust government economic interventions, suggests that far from being a non-starter, a public takeover of the fossil fuel industry should be considered an eminently plausible and viable policy option for dealing with the forthcoming climate crisis.

- by Thomas M Hanna
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- Economic History, Political Economy, Climate Change, Ownership
- by Sophie Meunier
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- Economics, Greece, Germany, Euro
- by godfrey rwezaura
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- Company Law, Bailout

In "The long shadow of the state: financializing the Chinese city" Fulong Wu reflects on the role of the state in financialization processes. The language of symbiosis, with key concepts such as mutualism, parasitism and commensalism, but also cleaning symbiosis, metabiosis, co-evolution, mutation and mimicry could help us to conceptualize state/finance relationships. Finance and the state have co-evolved and continue to do so. The role of the state in financialization processes often appears to be contradictory. Parasitism by finance may have already limited the state's capacity to respond to urban financialization. In a seemingly commensal relationship, the state may also be facilitating finance. In fact, such patterns may be indicative of a more mutualistic imperative in which the state tries to further its own interests through finance rather than at the expense of finance-it is here that Wu provides most evidence for the Chinese case. In other words, the state creates the conditions for the financialization of the city and by doing so it brings the characteristics of finance inside the state. In the process, the state mimics finance in order to extend state power and mutatesas a result of the specific co-evolution with finance.
KEYWORDS: Financialization; the state; symbiosis; co-evolution; mutation

- by Manuel Aalbers
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- Economic Sociology, Urban Geography, Coevolution, Symbiosis

With the recent development of the Occupy Movement, public criticism of neoliberalism has climaxed since the onset of a global financial crisis in late 2008. The mobilization of protesters in cities throughout the world was preceded by much speculation in the media and blogosphere over the past few years, where commentators have been quick to suggest that the end of neoliberalism is upon us. The validity of postneoliberalism, however, remains tenuous, as its advocates continue to treat neoliberalism as a monolithic, static, and undifferentiated end-state. Despite the desire to move beyond neoliberal strictures, there is an undeniable continuity to neoliberalism that must be appreciated if we ever hope to leave this unforgiving version of capitalism truly in the past.

- by Simon Springer
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- Critical Theory, Economic History, Sociology, Economic Sociology
- by Martijn Konings
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- Critical Theory, Political Economy, Welfare State, Economic policy
- by L. Larry Liu
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- Political Economy, Environmental Law, Human Rights Law, International Law

The economic and financial history of Greece offers interesting insights into the current worldwide economic crisis. In the nineteenth, twentieth and twenty-first centuries, Greece went through a series of financial disasters due to external factors and to policies that failed to take fiscal stability into account, insofar as they relied heavily on foreign loans. These, in many cases, led to real bankruptcies. This article compares the attempted bailout by a British bank in 1893 with the salvage operation of 2010 that avoided the technical bankruptcy of Greece. Although the outcomes differed, owing to sharply different geopolitical and geo-economic contexts and to the amount of money committed to these financial operations, in both cases Greece relied on Europe to avoid impending financial disaster.

- by Giampaolo Conte and +1
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- Economic History, European Studies, Banking, Modern Greece

The Jordanian people took to the streets for 3 days and nights in protest against a new austerity tax bill forcing the Prime Minister Hani Mulki to quit. They could no longer cope with the rising consumer prices and falling salaries; bread subsidies scrapped, fuel costs on the increase and added punitive taxation as part of the Monetary Fund's (IMF) Mnimonio conditions in exchange for government loans. Citizens so it seems, have become perfect victims and easy targets for bailing out incompetent (often corrupt) governments.

- by Andreas C Chrysafis
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- IMF, Cyprus, Greece, Bailout

The new forms of public intervention in the banking sector have shown the rise of new institutional figures that seem to have become by full right an integral part of the “bank administrative system”. In particular, the public missions with which "Società di gestione delle attività" (as a public bad bank) and "Cassa depositi e prestiti" (as a promotional national bank) have been entrusted, appear to be significant. They both share the European Commission's feeling that “an institution having a public mandate are privileged "vis-à-vis" private operators to make up for market failures”. But this revamped expression of the "banker State", which has to be applied the criterion of the market investor to be legitimate, has provided for absurd and hypocritical choices derogating from the binding accounting regime reserved to other banking operators, suggesting a reflection on the effective strength of a system still based on the “economic rationality” of the public investor.

- by Guido Befani
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- Bailout, EU State Aid Law, Bank state aid, Bankencrisimanagement, bail-in

Although considered an economic cataclysm comparable to the Great Depression, the Great Recession was in fact overcome quite swiftly. The paper focuses on the unfolding of the Great Recession in the United States, in Europe and in Romania, as well as on the policies and measures to restore growth. A special section labelled Lessons learned? deals with issues like the moral hazard of saving economic actors who fostered the crisis through their reckless pursuit of maximizing short-term profits, the institutional arrangements governing the financial sector, and the role of various stimulus packages. While combinations of neokeynesian policies have helped in overcoming the recession, the authors ask whether the fast recovery (at least at a global level) has not prevented a thorough restructuring of the economy in order to avoid future crises. Another issue is whether the social costs of the adjustments needed to overcome the recession, combined with the trend towards increasing economic polarization, are partially responsible for the upsurge of populist, illiberal and authoritarian political actors and/or movements, which provide pseudo-solutions to the challenges of the 21st century and therefore make progressive adjustments even more difficult.

- by Christian Năsulea
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- Great Recession, Bailout, Austerity Measures, Housing Bubble

In this paper we study the financial repercussions of the destruction of two fully armed and operational moon-sized battle stations ("Death Stars") in a 4-year period and the dissolution of the galactic government in Star Wars. The emphasis of this work is to calibrate and simulate a model of the banking and financial systems within the galaxy. Along these lines, we measure the level of systemic risk that may have been generated by the death of Emperor Palpatine and the destruction of the second Death Star. We conclude by finding the economic resources the Rebel Alliance would need to have in reserve in order to prevent a financial crisis from gripping the galaxy through an optimally allocated banking bailout.

- by Zachary Feinstein
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- Star Wars, Financial Crisis, Bailout, Systemic Risk
- by Xenia A Cherkaev and +1
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- Political Economy, Ethics, Commons, Political Anthropology
- by Simone Stancampiano
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- Bailout, Financial Technology, State Aids
- by Stephen Osei-Bonsu
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- Finance, Economics, Macroeconomics, Greek

Este artigo debruça-se sobre a natureza jurídica dos “memorandos de entendimento” negociados pelo Governo português com o Fundo Monetário Internacional, a Comissão Europeia e o Banco Central Europeu (a “troika”) que preveem o programa de ajustamento económico e financeiro que condiciona a assistência financeira internacional a Portugal entre 2011 e 2014. Aborda também, no mesmo contexto, o memorando que servirá de base a futuros “resgates” de Estados-Membros na União Europeia.

- by Francisco Coutinho
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- Portugal, Financial Crisis, Bailout, Troika

Este artigo elucida, inicialmente, quais os principais instrumentos institucionais e políticos que estabelecem as condições que geram o ciclo vicioso de irresponsabilidade fiscal dos entes subnacionais e subsequentes resgates por parte do ente central, através do ‘jogo do resgate’. Na sequência, essa matriz teórica será confrontada com o desenho federalista proposto pela Constituição de 1988 e as alterações legislativas promovidas posteriormente pela Lei de Responsabilidade Fiscal, como forma de correção da perversa matriz de incentivos estabelecida. Além disso, expõe-se as razões do fracasso de referida reestruturação, mediante a inserção de um novo jogador, o Supremo Tribunal Federal, na estrutura do jogo.

The Reconstruction Finance Corporation and Public Works Administration loaned 50 U.S. railroads over $1.1 billion between 1932 and 1939. The government’s goal was to decrease the likelihood of bond defaults and increase employment. Bailouts had little effect on employment, instead they increased the average wage of their employees. Bailouts reduced leverage, but did not significantly impact bond default. Overall, bailing out railroads had little effect on their stock prices, but resulted in an increase in their bond prices and reduced the likelihood of ratings downgrades. We find some evidence that manufacturing firms located close to railroads benefited from bailout spillovers.

- by Gertjan Verdickt
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- Economic History, Economics, Financial Economics, Macroeconomics

The international bailout granted to Portugal between 2011 and 2014 was conditional on the adoption by the Portuguese State of austerity measures included in a memorandum of understanding (MoU) signed by the European Commission on behalf of the European Union (EU) and the Member States. The MoU was never published in an official journal or even translated into the Portuguese language. Its implementation caused a significant decrease in the level of protection of social rights.
The compatibility of the MoU with core principles of the rule of law and with the EU´s social Constitution was never tested in court. A systemic failure in the jurisdictional system of the EU immunized the MoU to any judicial challenge. At the apex of the system, the Court of Justice of the EU declined to answer preliminary references submitted by Portuguese lower courts that questioned the compatibility with the Charter of Fundamental Rights of the EU of national budgetary measures that implemented the MoU. At the bottom, Portuguese courts either failed to properly identify the EU law acts that were the source of national austerity measures or disregarded their role as common EU law courts of ordinary jurisdiction when they bypassed the opportunity to refer a question for a preliminary ruling of the Court of Justice challenging the validity of the MoU.

- by Francisco Coutinho
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- International Law, European Union Law, Bailout, Troika

This paper argues for a reappraisal of extant scholarship on delegation in the domain of financial regulation. Through an examination of Japan's experience with financial regulation between 1992 and 2003, it is demonstrated that crisis-induced institutional development entails a shift toward a more flexible, trustee-type bureaucratic structure. While the logic presented in this paper is far from a universally applicable theory of institutional change, it calls into question the relevance of more conventional approaches to the origins of delegation of authority, notably the approach that uses unified and divided government as a key variable. A renewed emphasis on the role of extra-political sources of transfers of authority inside the executive, and also between the legislature and the executive, therefore, is in order.

- by Miklós Sebők
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- Japanese politics, Delegation, Bailout, Japanese political economy

The recent global financial catastrophe has raised questions about the relationship between corporate governance and the crisis. Many scholars attribute the crisis to the corporate failure and the Anglo-Saxon model of capitalism. Much of the literatures, however, tend to focus on examining the issue of financial crisis in the developed economy. Following up this line of literatures, this paper will extend the discussion of the role of corporate governance in financial crisis in the developing world. Using Indonesia as a case study, this paper will look at evidence that has emerged from the recent financial crisis regarding the failures of corporate governance in addressing and preventing the crisis.

- by Najmu Laila
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- Corporate Governance, Indonesia, Capitalism, Financial Crisis

This paper critically assesses the racialized hierarchies underpinning European responses to debt and financial crises. I begin by exploring the social and cultural identities that underpin contemporary understandings of capitalism and economic decision-making. I argue that the coherence of European capitalism reflects a Lacanian sense of fantasy that denies the racialized hierarchies that frame European responses to the crisis. Specifically, belief in capital and the European project was employed by the European Central Bank (ECB) and the Court of Justice of the European Union (CJEU) to justify imposing market discipline and responsibility on new European members through extra-legal decision-making. Technocratic responses to crisis deploy a supposed necessity and objectivity to bypass democratic, legal and constitutional limits, but rest on a vision of capitalism that denies the subjective and fantastic nature of this authority. As these 'policies of faith' are propagated via European debt and restructuring it is necessary to expose the cultural and political assumptions about capital, capitalism and expertise that underpin these policies.

- by Dan Bousfield
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- Critical Race Theory, Jacques Lacan, Slavoj Žižek, Greek Economy

- by Andreas C Chrysafis
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- Cyprus Studies, Banking, IMF, Greece
- by Vladimiro Giacché
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- Bailout, Finance and banking, Italian Banking and Finance, Banking and Finance

Widespread sentiment that the government had forsaken ‘Main Street’ to advance the interests of the financial sector led to significant investigation into the nature of business-state relations with respect to TARP’s formation and implementation. This paper seeks to explore the possibility that the United States finance sector influenced the implementation of TARP. Using a theoretical framework drawn from the works of Jacob Hacker and Paul Pierson, Ben Schneider, and David Broockman, this paper analyzes quantitative research for the use of pathways of influence by the finance sector on the TARP legislation. This paper aims to evaluate the possibility that TARP’s implementation was influenced by the finance sector to achieve its preferred policy outcomes. This paper finds evidence that instrumental mechanisms such as political contributions, lobbying, and networking were all both incentivized by the opportunity structure of the US political system and intensively used by actors in the finance sector. Additional evidence suggests that structural power complemented and compounded instrumental mechanisms of influence, contextualizing their usage.

- by Daniel Starkman
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- Finance, Financial Economics, American Politics, Comparative Politics

The Reconstruction Finance Corporation and Public Works Administration loaned 45 railroads over $802 million between 1932 and 1939. The government's goal was to decrease the likelihood of bond defaults and increase employment. Bailed-out railroads did not increase profitability or employment. Instead, they reduced leverage. Bailing out a railroad had little effect on its stock price, but it resulted in an increase in its bond prices and reduced the likelihood of a ratings downgrade. However, bailouts did not help railroads avoid defaulting on their debt. We find some evidence that manufacturing firms located close to railroads benefited from the bailouts.

- by Gertjan Verdickt
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- Economic History, Economics, Financial Economics, Macroeconomics

This study examines how the discursive struggles over the constituents of the financial crisis in Greece are policed by mainstream domestic media, in favour of the hegemonic interpretations of the crisis. The study focuses in particular on the discursive mechanisms the Greek press employed to legitimate the bailout agreements Greece signed with the troika. The analysis points to the discursive mechanisms of naturalisation and objectivation that empower the reconstruction of the hegemonic neoliberal rhetoric. The media studied actively participate in the discursive struggle over the crisis, exercising political agency by legitimating the bailout policies as the single course of action for the financial recovery of the country, while selectively omitting or discrediting alternative voices and interpretations.

- by Vaia Doudaki
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- Sociology, Hegemony, Legitimation, Bailout

This review critiques Nathan Marcus' Austrian Reconstruction and the Collapse of Global Finance, 1921-1931. The review evaluates the author's analysis of financial archives to identify the causes and effects of Austrian hyperinflation and its bailouts. The review critiques the author's comparison of the Austrian bailouts to the Greek bailout of the 2010s.

- by Matthew Kolasa
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- History, Economic History, Austria (European History), Financial History (History)

Regulations can have a detrimental effect on market efficiency and innovation. It consumes resources and management attention. Whilst regulation is necessary for a functioning market for financial services and products, over regulation can undermine Australia’s competitiveness internationally. Regulation itself has the potential to distort incentives and create systemic risks. NO MORE BAILOUTS Above all, the most affirming stance this new law makes is that “too-big-to-fail” financial institutions will not be bailed-out by taxpayer dollars this next time around. In and of itself this one caveat alone smacks of prudence on the part of our governing officials. After all it’s no secret that the bailouts created one the worst economic hazards for the helpless American taxpayer compared to any other financial reform to date; in no way was a financial dilemma rectified. Therefore, protecting taxpayer money became the principal priority of the new U.S. reform.

- by Mohamed Raffa
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- Banking, Banking Law, Banking Crisis, Bailout