20 research outputs found
The Performance of Banks around the Receipt and Repayment of TARP Funds: Over-Achievers versus Under-Achievers
The Relative Size of Acquisitions and the Wealth of Acquiring Firms: The Amplification Effect
Bank Bailouts, Competition, and the Disparate Effects for Borrower and Depositor Welfare
Did Saving Wall Street Really Save Main Street? The Real Effects of TARP on Local Economic Conditions
We investigate whether saving Wall Street through the Troubled Assets Relief Program (TARP) really saved Main Street during the recent financial crisis. Our difference-in-difference analysis suggests that TARP statistically and economically significantly increased net job creation and net hiring establishments and decreased business and personal bankruptcies. The results are robust, including accounting for endogeneity. The main mechanisms driving the results appear to be increases in commercial real estate lending and off-balance sheet real estate guarantees. These results suggest that saving Wall Street via TARP may have helped save Main Street, complementing the TARP literature and contributing to the cost-benefi