Too Big to Fail: Policies and Practices in Government Bailouts

Front Cover

Usually associated with large bank failures, the phrase too big to fail, which is a particular form of government bailout, actually applies to a wide range of industries, as this volume makes clear. Examples range from Chrysler to Lockheed Aircraft and from New York City to Penn Central Railroad. Generally speaking, when a corporation, an organization, or an industry sector is considered by the government to be too important to the overall health of the economy, it will not be allowed to fail. Government bailouts are not new, nor are they limited to the United States. This book presents the views of academics, practitioners, and regulators from around the world (e.g., Australia, Hungary, Japan, Europe, and Latin America) on the implications and consequences of government bailouts.

 

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Contents

Some Historical Perspectives on Too Big to Fail Policies
3
What Does Too Big to Fail Mean?
29
Too Big to Fail Government Bailouts and Managerial Incentives The Case of the Reconstruction Finance Corporation Assistance to the Railroad Indus...
49
Does Financial Liberalization Increase the Likelihood of a Systemic Banking Crisis? Evidence from the Past Three Decades and the Great Depression
77
The Federal Home Loan Bank System and the Farm Credit System Historic Parallels and Implications for Systemic Risk
107
Too Big to Fail in the Banking Industry A Survey
141
Too Big to Fail in US Banking Quo Vadis?
153
The Fall and Rise of Banking Safety Net Subsidies
169
Too Big to Fail A Taxonomic Analysis
219
Avoiding a Permanent Banking Crisis The Hungarian Banking Sector in the 1990s
231
Banking in Japan Will Too Big to Fail Prevail?
253
Too Big or Not Too Big to Fail Fannie Mae Freddie Mac and Enron
285
Are Fannie Mae and Freddie Mac Too Big to Fail?
287
Enron Not Too Big to Fail
329
About the Editors and Contributors
351
Index
357

International Perspectives
195
Too Big to Fail The Australian Perspective
197

Common terms and phrases

Popular passages

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About the author (2004)

BENTON E. GUP holds the Robert Hunt Cochrane-Alabama Bankers Association Chair of Banking at the University of Alabama, Tuscaloosa. He is the editor or author of numerous books, including The Future of Banking (2003), Megamergers in a Global Economy: Causes and Consequences (2002), and The New Financial Architecture: Banking Regulation in the 21st Century (2001), all published by Quorum Books.

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