Assessing TARP

• 成果类型: Article
• 署名作者: Bayazitova, Dinara; Shivdasani, Anil
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhr121
• 发表日期: 2012
• 页码: 377
• 关键词: ISSUANCES; voluntary; tests

摘要

We study the government equity infusions into banks under the Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP). Strong banks opted out of CPP, and equity infusions were provided to banks that posed systemic risk and faced high financial distress costs but had strong asset quality. Concerns over executive compensation led banks to reject CPP infusions and exit the program. CPP infusions did not have meaningful certification effects, but the subsequent stress tests conducted for the major banks had significant certification effects. CPP equity infusions increased investor expectations regarding future regulatory interventions in the banking sector. (JEL G18, G21, G28)