Culpepper, Pepper D. (2014) The economic footprint of its banks helped the U.S. to have a better bank bailout than the UK. USApp– American Politics and Policy Blog (18 Nov 2014). Website.
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Abstract
In 2008 politicians in the UK and the U.S. put in place massive bailout programs worth billions of dollars to save their ailing financial institutions. Six years on, U.S. taxpayers have made nearly $10 billion on their bailout investment, while those in the UK have lost around $14 billion. Pepper D. Culpepper writes that this difference is down to a combination of regulatory power and policy design. Regulators in the U.S. were able to require even those banks that were financially fit to accept money in exchange for stock because those banks earned the majority of their revenue locally. UK regulators on the other hand, were constrained by the vast market power of HSBC, which has only 20 percent of its business in the country, meaning that the bank was able to reject proposals that it take public money.
| Item Type: | Online resource (Website) |
|---|---|
| Official URL: | http://blogs.lse.ac.uk/usappblog/ |
| Additional Information: | © 2014 The Author, USApp– American Politics and Policy Blog, The London School of Economics and Political Science |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
| JEL classification: | G - Financial Economics > G2 - Financial Institutions and Services > G20 - General |
| Date Deposited: | 03 Dec 2014 15:35 |
| Last Modified: | 13 Sep 2024 19:09 |
| URI: | http://eprints.lse.ac.uk/id/eprint/60430 |
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