Boyson, Nicole M.

Helwege, Jean

Jindra, Jan

Yale University

Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents Browse by Media Type 12-7-2016 Thawing Frozen Capital Markets and Backdoor Bailouts Jean Helwege Nicole M. Boyson Jan Jindra Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Helwege, Jean; Boyson, Nicole M.; and Jindra, Jan, "Thawing Frozen Capital Markets and Backdoor Bailouts" (2016). YPFS Documents. 876. https://elischolar.library.yale.edu/ypfs-documents/876 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu.  North-Holland  March 2017 Thawing frozen capital markets and backdoor bailouts: Evidence from the Fed's liquidity programs Jean Helwege Nicole M. Boyson Jan Jindra Summary During the subprime crisis, the Federal Reserve introduced several emergency liquidity programs as supplements to the discount window (DW): TAF, PDCF, and TSLF. Using data on loans to large commercial banks and primary dealers, we find that the programs were used by relatively few institutions and thus provided limited relief to banks that relied on short-term debt markets. Although usage increased after Lehman's bankruptcy, most commercial banks avoided the DW and TAF. We also find that the programs were more often used by failed European banks than by healthy US banks, likely because these loans are expensive relative to private market funds. Our results also show that usage of PDCF and TSLF programs, while higher, was more often used by primary dealers in weaker financial positions. To view this article in its entirety please use the link provided below. View Full Article   Recommended Citation Helwege, Jean, et al. “Thawing Frozen Capital Markets and Backdoor Bailouts: Evidence from the Fed's Liquidity Programs.” ​Journal of Banking & Finance​, North-Holland, 7 Dec. 2016, www.sciencedirect.com/science/article/pii/S0378426616302254?via%3Dihub.  

Thawing Frozen Capital Markets and Backdoor Bailouts

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Thawing Frozen Capital Markets and Backdoor Bailouts

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