U.S. Banks, Crises, and Bailouts: From Mexico to LTCM / Rene M. Stulz.

Format:

Book

Author/Creator:

Stulz, Rene M.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7529.

NBER working paper series no. w7529

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

U.S. Banks, Crises, and Bailouts

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2000.

Summary:

This paper investigates the impact on bank stock prices of emerging market currency crises and bailouts. The stock market distinguishes between banks with exposure to a crisis country and other banks. In general, banks with exposures to a crisis country are affected adversely by currency events and positively by bailouts. Other banks are mostly unaffected by events in countries experiencing a crisis. The paper uses the impact of the LTCM crisis on bank stock prices to put the emerging market events in perspective. The LTCM crisis had no significant contagion effects in the banking sector either, but banks that participated in the LTCM rescue experienced negative stock returns when the rescue was announced.

Notes:

Print version record

February 2000.