Rescate y costos del riesgo financiero
Rescue costs and financial risk
Fernando Estrada
MPRA Paper from University Library of Munich, Germany
Abstract:
First externalities risk due to the size of the companies or the principle that large companies are also at risk of bankruptcy (too big to fail) are examined. The problem is illustrated by a case in which extreme risks with negative consequences for savers and investors are taken. If we accept-so conservatively that the risk exposure of a company is limited by its capital, while -ocasionales- external losses may adversely affect the general public, have placed to explain how and why the big break companies; or better understand why the big break also. In particular, considering the conditions to contain the risk foreseeable losses with positive externalities, then, what can happen with negative derivatives risk capital. Following Taleb / Tapiero, hypotheses are contrasted based on partial information of firms had losses (including external risk factors); the policy implications of this analysis are projected after evaluating two fundamental issues that continue to preoccupy the public opinion: how failures occur in markets for the case of large firms, corporations or companies, and what are the criteria for regulation and rescue available to governments, institutions and citizens to control them.
Keywords: Financial markets; Risk; externalities; Colombia; Interbolsa (search for similar items in EconPapers)
JEL-codes: G00 G01 G02 G14 G17 G18 G21 G28 G32 G33 G38 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:58848
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