Worthy of Bailout: To be or Not to be?

Imad A. Moosa
Additional contact information
Imad A. Moosa: RMIT

Chapter 6 in The Myth of Too Big to Fail, 2010, pp 109-123 from Palgrave Macmillan

Abstract: Abstract Sprague (1986) argues that “bailout is a bad word”, that “to many it carries connotations of preference and privilege and violation of the free market principles”, and that “it sounds almost un-American”. “Preference” and “privilege” are the key words in Sprague’s statements, hence the title of this section “cherry picking”. He examines four episodes of bailout, but right from the beginning he asks the questions: “why and how were four institutions selected to be saved”, “why only these four?”, and “why did you save Continental and not my bank?”. He answers the question “why the four?”, by saying that “we were afraid not to”. But why were “we” afraid only in those four cases?

Keywords: Total Asset; Hedge Fund; Credit Default Swap; Large Bank; Foreign Exchange Market (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-0-230-29505-6_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230295056

DOI: 10.1057/9780230295056_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().