Germany: Hsh Nordbank Capital Injection, 2009,
2024
Yale School of Management
Germany: Hsh Nordbank Capital Injection, 2009, Anmol Makhija
Journal of Financial Crises
State-controlled HSH Nordbank AG (HSH) lost EUR 2.8 billion in 2008, mainly because of impairments to its holdings of US structured credit securities. On April 29, 2009, the German bank regulator informed HSH that it would close HSH if the owners did not recapitalize the bank to the 8% total capital ratio requirement. In June 2009, the state governments of Hamburg and Schleswig-Holstein injected EUR 3 billion (USD 3.8 billion) of capital in ordinary shares with voting rights and provided a EUR 10 billion asset guarantee, called a “risk shield,” for a 7.85% annual fee. Over the next few years, …
Cyprus: Laiki Bank Capital Injection, 2012,
2024
Yale School of Management
Cyprus: Laiki Bank Capital Injection, 2012, Stella Schaefer-Brown
Journal of Financial Crises
In 2011, Cyprus’s second-largest bank, Marfin Popular Bank—later renamed Cyprus Popular Bank, but commonly known as Laiki Bank—lost billions of euros when the Greek government restructured its sovereign debt, decimating its equity capital and shutting its access to market liquidity. In late 2011, supervisors estimated the bank’s capital shortfall at EUR 3.1 billion. In January 2012, the bank submitted a plan to the central bank that included EUR 1.8 billion of capital raised from private investors and EUR 1 billion of capital increases through debt-to-equity swaps and deleveraging. However, Laiki Bank was unable to raise private capital and asked the …
France: Bank Of France Capital Injection, 1805,
2024
Yale School of Management
France: Bank Of France Capital Injection, 1805, Ayodeji George
Journal of Financial Crises
After receiving the exclusive right to issue bank notes in Paris in 1803, the Bank of France became a significant source of funding for the French government in early 1805, as Napoleon prepared for a key battle of the Napoleonic Wars. In the first half of 1805, the French treasury paid back loans with notes with later maturities rather than metallic money, draining the metallic liquidity reserves of the Bank of France far below levels that bankers at the time considered prudent. After the circulation of an unfounded rumor that Napoleon himself had raided the metallic reserves for the war …
Belgium: Fortis Group Capital Injection, 2008,
2024
Yale School of Management
Belgium: Fortis Group Capital Injection, 2008, Ayodeji George
Journal of Financial Crises
In September 2008, in the wake of the freezing of credit markets caused by the Global Financial Crisis (GFC), Fortis Group, a financial conglomerate incorporated in Belgium and the Netherlands, faced depositor runs and share price deterioration. These negative consequences were a result of its exposures to US subprime mortgage-related assets and other losses from its 2007 acquisition of ABN AMRO, a large Dutch bank. Over the weekend of September 27–29, authorities from Belgium, the Netherlands, Luxembourg, and the European Central Bank (ECB) held emergency talks, resulting in the announcement of EUR 11.2 billion (USD 14.3 billion) in capital injections …
Belgium And France: Dexia Group Capital Injection, 2008,
2024
Yale School of Management
Belgium And France: Dexia Group Capital Injection, 2008, Ayodeji George
Journal of Financial Crises
Dexia Group (Dexia, or the Group) was a banking and insurance conglomerate that specialized in public financing with major operations in Belgium, France, and Luxembourg. Following the collapse of Lehman Brothers in mid-September 2008, Dexia faced a liquidity crunch as wholesale funding markets froze. Faced with insolvency concerns, authorities from the bank’s three primary markets, Belgium, France, and Luxembourg, conducted overnight negotiations to agree on capital injection terms. On September 30, 2008, authorities and the bank’s board of directors announced a EUR 6.4 billion (eventually EUR 6 billion) capital injection intended to restore Dexia’s solvency and maintain systemwide stability. The …
Austria And Germany: Hypo Alpe Adria Capital Injections, 2008,
2024
Yale School of Management
Austria And Germany: Hypo Alpe Adria Capital Injections, 2008, Bailey Decker
Journal of Financial Crises
Hypo Alpe Adria (HAA) was Austria’s sixth-largest bank at the time of the Global Financial Crisis of 2007–2009 (GFC), with EUR 41.2 billion (USD 29.2 billion) in total assets as of June 30, 2008. HAA pursued a growth strategy in Southeastern Europe in the years preceding the GFC, which proved troublesome for HAA’s loan portfolio and led to large write-downs in autumn 2008. HAA’s majority shareholder was a German landesbank, Bayerische Landesbank (BayernLB). On October 26, 2008, the Austrian Parliament passed a EUR 100 billion support scheme in response to the GFC, with EUR 15 billion allocated for troubled banks. …
Survey Of Ad Hoc Capital Injections,
2024
Yale School of Management
Survey Of Ad Hoc Capital Injections, June Rhee, Benjamin Hoffner, Greg Feldberg, Andrew Metrick
Journal of Financial Crises
Government recapitalizations of systemic banking organizations can be costly and unpopular but are sometimes necessary to protect depositors and prevent financial contagion. This paper surveys 23 Yale Program on Financial Stability case studies of ad hoc capital injection programs, defined as programs that provide capital to a single institution or a clearly defined minority of institutions. We saw a marked increase in capital injection programs in the past 50 years, more than half of which were ad hoc. Authorities designing ad hoc capital injections face difficult decisions—when to deploy them rather than let a bank fail; whether to impose losses …
Adam Smith, Human Betterment, And His Erroneous Indentification With Self-Interested Human Action,
2024
Chapman University
Adam Smith, Human Betterment, And His Erroneous Indentification With Self-Interested Human Action, Vernon L. Smith
ESI Publications
In this essay I discuss the proposition that Adam Smith has been widely misinterpreted as asserting in his second book, The Wealth of Nations, that emergent modern economies are driven by the strictly selfish motives of their human inhabitants. The propositions articulated in his first book, The Theory of Moral Sentiments, which offered a theory of society, extended seamlessly into his second book, and continued to be part of his theory of economy. In both works, he distinguished the universal state of being self-interested from actions taken in one's self-interest, and modeled people as creating and following rules of propriety …
Trade, Usury, And The Incursion Of Desire,
2024
Wilfrid Laurier University
Trade, Usury, And The Incursion Of Desire, Allen Jorgenson
Consensus
No abstract provided.
Lessons Learned: Guillermo Ortiz Martínez,
2024
Yale University
Lessons Learned: Guillermo Ortiz Martínez, Mercedes Cardona
Journal of Financial Crises
Guillermo Ortiz Martínez served as undersecretary of finance and public credit in Mexico’s federal government from 1988 to 1994. He became secretary in December 1994 in the administration of Ernesto Zedillo and served until December 1997. As undersecretary, he was president of the bank privatization committee and the chief negotiator for Mexico during the North American Free Trade Agreement (NAFTA) negotiations in 1991 to 1993. He was governor of the Bank of Mexico from January 1998 to December 2009 and is currently partner and member of the board of BTG Pactual, a Brazilian investment bank. This Lesson Learned summary is …
Lessons Learned: Paul Boothe,
2024
Yale University
Lessons Learned: Paul Boothe, Mary Anne Chute Lynch
Journal of Financial Crises
Paul Boothe served as Canada’s senior associate deputy minister of industry during the Global Financial Crisis (GFC) of 2007–2009. Boothe led the Canadian federal government’s negotiation team during the restructuring talks with Chrysler and General Motors (GM). He also negotiated with the Canadian Auto Workers (CAW), a union that included Tier 1 auto parts suppliers for all the major auto manufacturers worldwide. Canada aligned with the United States government to rescue the auto manufacturers and provided 20% of the funding to rescue the corporations and suppliers. From 2004 to 2005, Boothe served as the associate deputy minister of finance and …
Lessons Learned: Bo Lundgren,
2024
Yale University
Lessons Learned: Bo Lundgren, Maryann Haggerty
Journal of Financial Crises
Bo Lundgren was Sweden’s cabinet minister for fiscal and financial affairs from 1991 to 1994, making him a key leader in managing the nation’s severe financial crisis during those years. Lundgren had a decades-long political career as a member of the Swedish Parliament from 1975 to 2004, was leader of the Moderate Party (1999–2003), and vice president of the European People’s Party in the European Union. He also served from 2004 to 2013 as director general of the Swedish National Debt Office, the country’s central financial agency. Drawing on his experiences in the Swedish crisis, Lundgren has shared his views …
India: Yes Bank Restructuring, 2020,
2024
Yale Program on Financial Stability, Yale School of Management
India: Yes Bank Restructuring, 2020, Salil Gupta
Journal of Financial Crises
Yes Bank was suffering from liquidity outflows in the second half of 2019 owing to a combination of deposit withdrawals, invocation of pledged shares, losses from extraordinary credit provisions, and overexposure to stressed sectors like power and infrastructure. In December 2019, Yes Bank reported a Common Equity Tier 1 capital ratio at 0.6%, far below the Reserve Bank of India (RBI) mandated levels, and a quarterly loss of 185 billion Indian rupees (INR; USD 2.5 billion). In early March 2020, the RBI and the Ministry of Finance announced a restructuring plan for India’s fourth-largest private bank, Yes Bank, to prevent …
One Island, Two Worlds: An Investigation Of The Diverging Economies Of The Dominican Republic And Haiti,
2024
Ursinus College
One Island, Two Worlds: An Investigation Of The Diverging Economies Of The Dominican Republic And Haiti, Daniel Espinal
Business and Economics Summer Fellows
An investigative study into the diverging economies of the Dominican Republic and Haiti. A greater focus is placed on the divergence point of the 1960s where two authoritarian leaders both ruled the country.
The New China Model: Combating Economic And Political Order,
2024
Dartmouth College
The New China Model: Combating Economic And Political Order, Jack R. Swords
Dartmouth College Master’s Theses
Contemporary world politics centers around the actions of the two largest powers on Earth, the United States and China. They are both each other’s greatest adversary yet at the same time are each other’s largest trading partners. This thesis explores the nature of China’s economic climate that has seen it grow to one of the world’s foremost powers. However, the East Asian Nation faces economic challenges centered around the three D’s: Debt, Deflation, and Demographics. This thesis analyses what the nature of these challenges are and how China is responding to them within the ever-advancing world of economic and political …
Starbucks Workers United And The Future Of American Labor Activism,
2024
Seattle Pacific University
Starbucks Workers United And The Future Of American Labor Activism, Sophia Drake Braymen
Honors Projects
This essay explores the goals, motivations, and methods of Starbucks Workers United (the campaign of the labor union Workers United that is aimed at organizing Starbucks employees), as well as the Starbucks Company’s response to it. The analysis is informed by the author’s interviews with both a Workers United organizer and a Starbucks corporate employee. This essay explores the position of Starbucks Workers United within the broader history of American labor activism and our current epoch of union decline, as well as what the recent breakthrough in cooperation between Workers United and Starbucks means for American workers going into the …
We Cannot Labor Our Way Out Of Oppression: An Exploratory Study Of Wealth Through Black Women’S Lived Experience,
2024
CUNY Graduate Center
We Cannot Labor Our Way Out Of Oppression: An Exploratory Study Of Wealth Through Black Women’S Lived Experience, Tiffany N. Younger
Dissertations, Theses, and Capstone Projects
An exploratory qualitative phenomenological study was used to explore Black women’s experiences with wealth accumulation. The aims of this study were to better understand how Black women navigate financial obligations as heads of households and the impact of the wealth gap on their lives. The research on the wealth gap, informed by U.S. values and culture, has assumed the accumulation of wealth is the baseline/default goal or aspiration for all individuals. More specifically the subaims of this study sought to examine the extent to which the structural, interpersonal, disciplinary, and hegemony impacts Black women’s wealth status. Furthermore, this study sought …
No Time For Tea: Hidden Figures Of The Dutch Tea Industry,
2024
Independent Scholar
No Time For Tea: Hidden Figures Of The Dutch Tea Industry, Annette Kappert, Lysbeth Vink
Dublin Gastronomy Symposium
This paper explores the historical role women played in promoting, distributing, and establishing tea consumption in The Netherlands. Despite being the first nation to introduce tea to the Western world, and the abundance of literature and images documenting women as sapless tea drinkers, languishing their afternoons away, entertaining and sipping the amber brew in their tea houses, the latter is far from reality. Preliminary research indicates Dutch women were instrumental in establishing an elite tea industry in The Netherlands and beyond. Aptly the authors utilized the archives to explore visual and narrative data dating from 1610 to present, to find …
Pork Problems - Embodied Britishisms Onboard The First Fleet To Australia,
2024
University of Tasmania
Pork Problems - Embodied Britishisms Onboard The First Fleet To Australia, Evelyn Lambeth
Dublin Gastronomy Symposium
Pigs arrived in Australia with British settlers onboard the First Fleet in 1788 and rapidly spread. As a product of British Imperialism, Australia has adopted many cultural consumption practices from its parent colony. Meat is on many tables, but not every table showcases the same animal, and these cultural differences illustrate that conditions of edibility are not equally defined. British values were attached to pigs, embedding them with transformative abilities to shape colonial ecosystems. Australian industries, jobs, and livelihoods are deeply connected to the past. The East India Company introduced Chinese pigs to Britain from 1685. The history of pigs …
“Praying And Eating”: The Preservation Of Jewish Food Traditions In The Wake Of Brexit Trauma,
2024
Technological University Dublin
“Praying And Eating”: The Preservation Of Jewish Food Traditions In The Wake Of Brexit Trauma, Angela Hanratty
Dublin Gastronomy Symposium
This research examines the impact that Brexit, the Northern Ireland Protocol, and the Windsor Framework have had on the food traditions of the Jewish population of Ireland, through focusing on the lived experience of the Jewish communities of Belfast and Dublin and their collective memory. While there has been much debate on the lasting effect of the UK leaving the EU on industry and agriculture, the deleterious impact on the kosher observant in Ireland has been less documented, with specific challenges for the preservation of food traditions in a community with a history “full of praying and eating” (Maurice Cohen, …
