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Hungary Recapitalization Scheme, Alec Buchholtz

Journal of Financial Crises

In the midst of the global financial crisis in October 2008, the Magyar Namzeti Bank (MNB), the Hungarian national bank, noticed a selloff of government securities by foreign banks and a large depreciation in the exchange rate of the Hungarian forint (HUF) in FX markets. Hungarian banks experienced liquidity pressure due to margin calls on FX swap contracts, prompting the MNB and Minister of Finance to seek assistance from the International Monetary Fund (IMF), European Central Bank (ECB) and the World Bank. The IMF and ECB approved the Hungarian government’s (the State) requests in late 2008 to create a €19 …

The Hungarian Bank Recapitalization Program, Junko Oguri

Journal of Financial Crises

Hungary implemented a number of new policies from the late 1980s to the early 1990s, shifting from a centrally planned economy to a market economy. Despite the top-down market reforms, Hungary lacked the knowledge to build a fully functional financial system. Eventually, an economic turmoil caused by the collapse of eastern markets and fragility in the financial system led to the banking crisis of 1992–1993, revealing the undercapitalization of the financial system. The government implemented the recapitalization, or “bank consolidation,” as part of a stabilization program. It injected capital into banks in three stages—in December 1993, May 1994, and December …

Hong Kong Contingent Bank Capital Facility (Cbcf), David Tam, Steven Kelly

Journal of Financial Crises

On October 14, 2008, Hong Kong’s financial secretary announced the Hong Kong Monetary Authority (HKMA) would use Hong Kong’s Exchange Fund to provide standby capital to banks if needed. The Contingent Bank Capital Facility (CBCF) was available until the end of 2010 to shore up depositor and investor confidence in the local banking sector and commenced in parallel with a broader set of announced measures including a consumer bank deposit guarantee. Twenty-three locally incorporated “Authorized Institutions” were eligible to access CBCF capital upon request. The provisioning of CBCF capital would be accompanied by enhanced oversight from the HKMA. The Hong …

Greece (2008) – Capital Injections, Manuel León Hoyos

Journal of Financial Crises

In October 2008, in the midst of the Global Financial Crisis (2007–09), the Greek government announced a €28 billion ($36 billion) government package. Greek Law 3723/2008, “Enhancement of Liquidity in the Economy in Response to the Impact of the International Financial Crisis,” was passed and approved under European Union State Aid rules. The Greek law provided for three voluntary programs: recapitalizations (€5 billion), guarantees (€15 billion), and securities (€8 billion). This case study exclusively examines the recapitalization program. In this program, the Greek government acquired convertible preferred shares in banks in order to build and maintain banks’ Tier 1 capital …

Germany Soffin Capital Injections, Priya Sankar

Journal of Financial Crises

The insolvency of Lehman Brothers in September 2008 and the subsequent global liquidity crisis spurred the German state to pass the Financial Market Stabilization Fund Act (Finanzmarktstabilisierungsfondsgesetz, “FMStFG”) establishing the Federal Agency for Financial Market Supervision (Bundesanstalt für Finanzmarktstabilisierung), or FMSA. Created in October 2008, it provided government support to ailing financial institutions. The FMSA supported German banks and maintained the stability of the German banking system, in part by establishing the Financial Market Stabilization Fund (Sonderfunds Finanzmarktstabilisierung), or SoFFin. SoFFin could provide capital injections and risk shield measures of €80 billion and also possessed a guarantee provision of up …

France Société De Prise De Participation De L’État (Sppe), Devyn Jeffereis

Journal of Financial Crises

As the Global Financial Crisis deepened, the bankruptcy of Lehman Brothers on September 15, 2008, and ensuing contagion began affecting the French economy and financial system. France experienced declines in major economic indicators such as GDP, household consumption, and investment. In addition, the ensuing credit crunch in financial markets resulted in the seizing up of various lending markets. Due to conservative business practices, a consolidated market structure, and a sound regulatory framework, the French banks were relatively better situated than their European counterparts to weather the crisis. However, the French authorities instituted a precautionary recapitalization scheme in order to “restore …

Finland’S 1992 Capital Injection, Kaleb B. Nygaard

Journal of Financial Crises

Following a large-scale deregulation of the financial sector during the 1980s and subsequent massive credit expansion, a banking crisis in Finland caused a sharp contraction in the economy in the early 1990s. To prevent the collapse of the banking system, the government offered FIM 8 billion in capital injections. Parliament appropriated the funds in the spring of 1992 and terms were defined in June 1992. The program was open to all banks, in proportion to their size, regardless of their solvency. In the fall of 1992, FIM 7.9 billion was deployed to 56 cooperative banks and 22 savings banks of …

Danish Capital Injections Scheme 2009 (Dk Gfc), Priya Sankar

Journal of Financial Crises

Both the international financial system and Denmark were experiencing challenges in 2007 and 2008, and they came to a head in Denmark when Roskilde Bank experienced liquidity pressures in June 2008. As it became clear that Roskilde Bank was insolvent and no private solutions would be found, and as the global financial crisis worsened leading to the bankruptcy of Lehman Brothers, the Danish government decided to take stronger action. To ensure the short-term survival of Roskilde Bank, the national bank issued a non-limited credit facility. After it passed a deposit guarantee scheme in 2008 and established a Financial Stability Company, …

Colombia: Fogafin Capitalizations Of 1999 And 2001, Junko Oguri, Manuel León Hoyos

Journal of Financial Crises

In 1998, Colombia entered a severe recession. GDP contracted by 4.2% in 1999, and the unemployment rate surpassed 20%. Political turmoil exacerbated trade and fiscal imbalances. The economic downturn led to credit contractions, particularly in the mortgage market. The nonperforming loan (NPL) ratio increased from 8% in December 1997 to 16.1% in November 1999. The NPL ratio for residential mortgages grew from 6% in December 1997 to 19.8% in January 2000.

In 1999, due to the continuous deterioration of credit institutions, the government, through FOGAFIN (the Financial Institutions Guarantee Fund—the state agency for bank resolutions and deposit insurance), initiated rescue …

Austria: Finanzmarktstabilitätsgesetz (Finstag), Claire Simon

Journal of Financial Crises

Following the adoption of a joint framework by euro area countries in response to the intensifying financial crisis in October 2008, Austria enacted a package of measures including the Financial Market Stability Act (Finanzmarktstabilitätsgesetz, or FinStaG). In addition to permitting nationalization under certain circumstances, FinStaG allowed the Austrian government to use six specific measures to recapitalize credit institutions operating in Austria and Austrian insurance companies. According to FinStaG, €15 billion ($22 billion) could be used for this purpose, though this amount was later increased. Eight institutions received support through FinStaG, and the government granted capital and liquidity support totaling €21 …

No Manuals: Archives Administration 100 Years After Jenkinson’S Manual, James Lowry, Riah Lee Kinsey, Aimee Lusty, Ezra Hyman, Phyllis Heitjan, Alexander Rettie, Kylie Goetz

Journal of Contemporary Archival Studies

This article discusses authority and the codification of professional principles in the archival field by comparing Sir Hilary Jenkinson’s Manual of Archive Administration (1922) with the contents of a wiki called A (New) Manual of Archive Administration, created by the Archival Discourses research network in the lead up on the centenary of Jenkinson’s text. Instead of a systematic comparison of the two texts, the article uses the mode of the “wiki game” to randomly navigate the intellectual content of the wiki. The authors then make comparisons between the wiki entries and the ideas espoused in Jenkinson’s manual. This comparison …

Us Capital Purchase Program, Aidan Lawson, Adam Kulam

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No abstract provided.

Hong Kong Contingent Bank Capital Facility (Cbcf), David Tam, Steven Kelly

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No abstract provided.

Review Of Communities, Archives And New Collaborative Practices (2020), Jennifer Coggins

Journal of Contemporary Archival Studies

This collection of varied case studies demonstrates the value and possibilities of participatory documentation initiatives, framing them in the context of the turn towards archives as collaborative spaces and the opportunities presented by the internet. Readers will find the volume useful as a source of creative models for community memory projects, but less so for addressing the challenges of long-term preservation and access in community archives. Overall, it is a valuable resource for those taking on community and participatory archives efforts.

Review Of Ghosts Of Archive: Deconstructive Intersectionality And Praxis, Rose Buchanan

Journal of Contemporary Archival Studies

Ghosts of Archive: Deconstructive Intersectionality and Praxis explores the relationship between archives and power to posit an archival praxis centered around justice. Drawing on his experiences working for South Africa's National Archives and the Nelson Mandela Foundation, Harris shows how archives have the potential for oppression and liberation, harm and healing. His work will appeal to all readers interested in social justice.

Ypfs Lessons Learned Oral History Project: An Interview With Hiroshi Nakaso, Hiroshi Nakaso, Maryann Haggerty

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Suggested Citation Form: Nakaso, Hiroshi, 2022. “Lessons Learned Interview by Maryann Haggerty, November 9, 2021”. Yale Program on Financial Stability Lessons Learned Oral History Project. Transcript. https://ypfs.som.yale.edu/library/ypfs-lesson-learned-oral-history-project-interview-hiroshi-nakaso

Optimal Unilateral Carbon Policy, Samuel Kortum, David A. Weisbach

Cowles Foundation Discussion Papers

We derive the optimal unilateral policy in a general equilibrium model of trade and climate change where one region of the world imposes a climate policy and the rest of the world does not. A climate policy in one region shifts activities—extraction, production, and consumption—in the other region. The optimal policy trades off the costs of these distortions. The optimal policy can be implemented through: (i) a nominal tax on extraction at a rate equal to the global marginal harm from emissions, (ii) a tax on imports of energy and goods, and a rebate of taxes on exports of energy …

Ypfs Lessons Learned Oral History Project: An Interview With Faith Schwartz, Faith Schwartz, Mary Anne Chute Lynch

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No abstract provided.

The Bank Of England's Approach To Tiering Incoming Central Counterparties, Bank Of England/Central Bank Of The United Kingdom

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No abstract provided.

Central Bank Swap Lines: Evidence On The Effects Of The Lender Of Last Resort, Saleem Bahaj, Ricardo Reis

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No abstract provided.

Greening Our Corporate Bond Purchase Scheme, Bank Of England/Central Bank Of The United Kingdom

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No abstract provided.

About Cdic, Taiwan: Central Deposit Insurance Corporation

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No abstract provided.

Disclosure Of Asset Sale Completion, Uk Parliament

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No abstract provided.

Organizational Structure And Pricing: Evidence From A Large U.S. Airline, Ali Hortaçsu, Olivia R. Natan, Hayden Parsley, Timothy Schwieg, Kevin R. Williams

Cowles Foundation Discussion Papers

Firms often involve multiple departments for critical decisions that may result in coordination failures. Using data from a large U.S. airline, we document the presence of important pricing biases that differ significantly from dynamically optimal profit maximization. However, these biases can be rationalized as a “second-best” after accounting for department decision rights. We show that assuming prices are generated through profit maximization biases demand estimates and that second-best prices can persist, even under improvements to pricing algorithm inputs. Our results suggest caution in abstracting from organizational structure and drawing inferences from firms’ pricing decisions alone.

Coresets For Time Series Clustering, Lingxiao Huang, K. Sudhir, Nisheeth Vishnoi

Cowles Foundation Discussion Papers

We study the problem of constructing coresets for clustering problems with time series data. This problem has gained importance across many fields including biology, medicine, and economics due to the proliferation of sensors for real-time measurement and rapid drop in storage costs. In particular, we consider the setting where the time series data on N entities is generated from a Gaussian mixture model with autocorrelations over k clusters in R^d. Our main contribution is an algorithm to construct coresets for the maximum likelihood objective for this mixture model. Our algorithm is efficient, and, under a mild assumption on …

Coresets For Regressions With Panel Data, Lingxiao Huang, K. Sudhir, Nisheeth Vishnoi

Cowles Foundation Discussion Papers

This paper introduces the problem of coresets for regression problems to panel data settings. We first define coresets for several variants of regression problems with panel data and then present efficient algorithms to construct coresets of size that depend polynomially on 1/ε (where ε is the error parameter) and the number of regression parameters – independent of the number of individuals in the panel data or the time units each individual is observed for. Our approach is based on the Feldman-Langberg framework in which a key step is to upper bound the “total sensitivity” that is roughly the sum of …

Organizational Structure And Pricing: Evidence From A Large U.S. Airline, Ali Hortaçsu, Olivia R. Natan, Hayden Parsley, Timothy Schwieg, Kevin R. Williams

Cowles Foundation Discussion Papers

Although typically modeled as a centralized firm decision, pricing often involves multiple organizational teams that have decision rights over specific pricing inputs. We study team input decisions using comprehensive data from a large U.S. airline. We document that pricing at a sophisticated firm is subject to miscoordination across teams, uses persistently biased forecasts, and does not account for cross-price elasticities. With structural demand estimates derived from sales and search data, we find that addressing one team’s biases in isolation has little impact on market outcomes. We show that teams do not optimally account for biases introduced by other teams. We …

Global Financial Development Database, World Bank/World Bank Group

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No abstract provided.

Lessons Learned: Matthew Kabaker, Yasemin Esmen, Matthew Kabaker

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Esmen, Yasemin (2021) "Lessons Learned: Matthew Kabaker," The Journal of Financial Crises: Vol. 3 : Iss. 3, 966-969.

Lessons Learned: Steven Adamske, Mercedes Cardona

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Recommended Citation : Cardona, Mercedes (2021) "Lessons Learned: Steven Adamske," The Journal of Financial Crises: Vol. 3 : Iss. 3, 957-960.