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A fascinating example from a recent paper of how financial panics are undiscerning in their carnage and collateral damage. Many of the banks that failed during Great Depression bank panics were as healthy as the ones that didn’t: This paper … investigates whether the [Depression bank] panics resulted in the failure and liquidation of banks that might otherwise have been able to pursue a less disruptive resolution strategies such as merging with another institution or suspending operations and recapitalizing. Using data on individual state-chartered banks, I find that m…
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17 Febrero, 2008| Economy |
@ 17:36
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