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Cleaning Up The Refuse From A Financial Crisis: The Case For A Resolution Management Corporation, James Thomson
Cleaning Up The Refuse From A Financial Crisis: The Case For A Resolution Management Corporation, James Thomson
James B Thomson
Systemic banking and financial crises invariably result in the transfer of a large volume of distressed financial assets into the hands of the government, which must later dispose of them. The fiscal and economic costs of the crisis and the speed of recovery depend on how effectively the government’s salvage operations can re-privatize these assets. To maximize the operations’ effectiveness, I propose that the government create a temporary resolution management corporation. Drawing on Kane’s (1990) asset-salvage principles, as well as the U.S. experience with special-purpose entities for managing and disposing of assets stripped from distressed financial firms’ balance sheets, I …
The Importance Of Financial Market Development On The Relationship Between Loan Guarantees For Smes And Local Market Employment Rates, Ben Criag, William Jackson, James Thomson, Craig Armstrong
The Importance Of Financial Market Development On The Relationship Between Loan Guarantees For Smes And Local Market Employment Rates, Ben Criag, William Jackson, James Thomson, Craig Armstrong
James B Thomson
We empirically examine whether a major government intervention in the small firm credit market yields significantly better results in markets that are less financially developed. The government intervention that we investigate is SBA guaranteed lending. The literature on financing small and medium size enterprises (SMEs) suggests that small firms may be exposed to a particular type of market failure associated with credit rationing. And, SMEs in markets that are less financially developed will likely face a greater degree of this market failure. To test our hypothesis we use the level of bank deposits per capita as our relative measure of …