Road to Crisis

Brian O’Sullivan ()
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Brian O’Sullivan: King’s College London

Chapter Chapter 7 in From Crisis to Crisis, 2018, pp 189-223 from Palgrave Macmillan

Abstract: Abstract This chapter explores whether the merchant banks took unacceptable risks to retain their market share. Despite growing concerns about the European situation and an increase in commercial failures, it is shown that a number of merchant banks adopted high-risk strategies. Their exposures are demonstrated by examining the available financial data, including balance sheets and bad debts. The official response will also be considered to determine the nature of any support provided by the Bank of EnglandBoE and to assess whether there was moral hazard in the behaviour of the merchant banks.

Keywords: 1931 Financial crisis; Commercial failures; European crisis; Bank of England; Bail-outs; Morale hazard (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-319-96698-4_7

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DOI: 10.1007/978-3-319-96698-4_7

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