Taxpayer subsidies in failed thrift resolution: the impact of FIRREA

Article Abstract:

Passage of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) in August 1989 gave way for the relegation of chartering, insurance and failure resolution function of thrifts to other government agencies such as the Resolution Trust Corporation (RTC). Generally, institutional changes provided under the FIRREA pan out significant improvements in conducting resolution processes for failed thrifts. However, results gathered from data before and after the imposition of FIRREA suggest that the RTC made no substantial contributions in acquiring excess returns on average.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Financial Regulation & Reporting, Analysis, Laws, regulations and rules, Financial services industry, Financial services, Savings, Financial disclosure

---

Asset returns and economic disasters: evidence from the S&L crisis

Article Abstract:

Depositors lost their trust on the Federal Savings and Loan Insurance Corp. (FSLIC) during the two years before the passage of the Financial Institutions Reform, Recovery, and Enforcement Act, which recapitalized the deposit insurance fund in 1989. Cross-sectional analysis is used to determine both the probability and the conditional price of risk associated with FSLIC default. Findings indicate that increased uncertainty about both output and inflation increased the price of FSLIC default risk to very high levels.

Savings & Loan Assns, Savings Institutions, Research, Public opinion, Uncertainty, Certificates of deposit

---

FSLIC assistance and the wealth effects of savings and loan acquisitions

Article Abstract:

A study was conducted to determine the effect of FSLIC-assisted (Federal Savings and Loan Insurance Corp) thrift mergers on acquiring firm shareholders. It is shown that acquiring companies exhibited positive abnormal returns upon reception of merger information. Returns were greater for firms who enjoyed direct assistance from the FSLIC. These results imply a wealth transfer effect for concerned firms.

Savings institutions, except federal, Services

Similar abstracts:

• Abstracts: Gender differences in salary and promotion in the humanities. The gender gap in wages, circa 2000
• Abstracts: Trade and growth in small states: the impact of global trade liberalization. Safeguard provisions and international trade agreements involving services
• Abstracts: The natural rate of unemployment in Korea: estimations and implications. Instability of general equilibrium in a labor-managed economy
• Abstracts: Gains in bank mergers: evidence from the bond markets. Founding family ownership and the agency cost of debt. Seniority and maturity of debt contracts
• Abstracts: Cyclical equilibria in multi-sector productive economies: the role of substitution and factor density. On testing the intertemporal subtitution theory of labor supply

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.