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dc.contributor.authorCoates, John
dc.contributor.authorScharfstein, David Stuart
dc.date.accessioned2013-11-25T19:17:31Z
dc.date.issued2009
dc.identifier.citationJohn C. Coates & David Scharfstein, Lowering the Cost of Bank Recapitalization, 26 Yale J. on Reg. 373 (2009).en_US
dc.identifier.issn0741-9457en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:11337410
dc.description.abstractEfforts to recapitalize banks in the current crisis have to date been focused on government assistance under the TARP, rather than private investment, and on bank holding companies, rather than banks. We describe three alternative or complementary approaches designed to lower the cost of bank recapitalizations by drawing in funds from the private sector and focusing on banks: rights offerings, debt restructurings, and FDIC-assisted bridge banks. Each approach was used in dealing with problem banks in the 1990s; each can be pursued without additional legislation; and each is worth considering now. We also propose two legal changes that would assist bank recapitalization: (1) the Fed should further modestly relax its rules under the Bank Holding Company Act to eliminate the presumption of "control" by investors at the current threshold of 5%, which would permit more capital to be invested in banks by private equity and other institutional investors; and (2) Congress should consider a new statute to streamline the recapitalization of bank holding companies by moving them outside current bankruptcy laws into a new resolution regime similar to the FDIC regime currently used for banks.en_US
dc.language.isoen_USen_US
dc.publisherYale Journal on Regulationen_US
dc.relation.isversionofhttp://www.law.yale.edu/documents/pdf/cbl/Coates_Lowering_Cost.pdfen_US
dc.relation.hasversionhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1345962en_US
dash.licenseMETA_ONLY
dc.titleLowering the Cost of Bank Recapitalizationen_US
dc.typeJournal Articleen_US
dc.description.versionAuthor's Originalen_US
dc.relation.journalYale Journal on Regulationen_US
dash.depositing.authorCoates, John
dash.embargo.until10000-01-01
dash.contributor.affiliatedCoates, John
dash.contributor.affiliatedScharfstein, David


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