Overpaid CEOs Got FDIC Debt Guarantees

Wilson, Linus; Wu, Yan Wendy

doi:10.2139/ssrn.1977345

Cited by 6 publications

(1 citation statement)

References 28 publications

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“…Wilson et al ( 2014 ) finds a negative association between investment banks’ borrowing from the Federal Reserve’s Term Securities Lending Facility (TSLF) and the receipt of Troubled Asset Relief Program (TARP) capital injections. Yet, Wilson and Wu ( 2017 , 2018 ) find that there is a significant positive association between receiving TARP funds and selling commercial paper to the Federal Reserve through the Commercial Paper Financing Facility (CPFF) and receiving debt guarantees from the Federal Deposit Insurance Corporation (FDIC).…”

Section: Hypothesesmentioning

confidence: 99%

Broken bucks: money funds that took taxpayer guarantees in 2008

Wilson

2020

J Asset Manag

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This is the first study to look at the characteristics of funds accepting the $2.7 trillion taxpayer guarantee of money market mutual funds during the 2008 financial crisis. Fund shares that benefited from Federal Reserve's asset-backed commercial paper program were significantly more likely to get bailed out by taxpayers and sponsors. The paper tests if funds adhering to the SEC's 2010 liquidity reforms prior to their enactment were less likely to be bailed out in 2008. Finally, it examines if funds subject to the 2014 floating NAV regulations were more likely to be bailed out in 2008.

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Section: Hypothesesmentioning

confidence: 99%