• DOI:10.2139/ssrn.1461884
Corpus ID: 219351866

Assessing TARP

@article{Bayazitova2011AssessingT,
  title={Assessing TARP},
  author={Dinara Bayazitova and A. Shivdasani},
  journal={Banking & Insurance eJournal},
  year={2011}
}

Dinara Bayazitova, A. Shivdasani

Published 2011

Banking & Insurance eJournal

We study the government equity infusions and the incentives of banks to participate in the Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP). We show that strong banks opted out of participating in CPP and that equity infusions were provided to banks that posed systemic risk, faced high financial distress costs, but had strong asset quality. Concerns over executive compensation restrictions accompanying TARP led banks to reject CPP infusions and exit the program. CPP… CONTINUE READING

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