A blog on all things to do with economics and related subjects
Sunday, 9 September 2012
Bank resolution: from Cinderella to centre stage
From VoxEu.og comes this audio in which Xavier Freixas talks to Viv Davies about the recent changes in the European banking resolution regime. They discuss the tension between ex ante incentives and ex post efficiency in banking. Freixas argues that the best way to analyse a bank resolution situation is to think of it as a bargaining game between the bank's shareholders and the treasury.