Banque de France - Toulouse School of Economics conference on “Bailouts, bail-in, and financial stability” - November 28, 2014, Banque de France (Paris)

The Banque de France and Toulouse School of Economics (TSE) will organize a one day conference on “Bailouts, bail-in, and financial stability”. The joint conference will take place in Paris on November 28, 2014.

To prevent the collapse of the global financial system, governments in major jurisdictions intervened by bailing out some financial institutions or providing public guarantee to unsecured bank-debt holders. While these interventions were aimed at stabilizing markets, they may have reinforced market perceptions that some financial firms are too-important-to-fail. The risk-taking incentives implied by these expectations are viewed by many as one worrying legacy of the crisis. The conference aims to discuss the quantitative importance of the implicit public guarantee, its consequence on the efficiency and stability of the banking system, and the regulatory measures to address this issue. Five research papers will be presented, followed by a policy panel on the current FSB regulatory initiatives aiming at ending too-big-to-fail by increasing banks Total Loss Absorption Capacity (TLAC).

Organizing committee:

Régis Breton (Banque de France), Laurent Clerc (Banque de France), Augustin Landier (TSE)

To attend this conference, please fill in and return the following registration form to 1537-TSENOV2014-UT@banque-france.fr by November, 14th.

Conference papers and presentations

“The End of Market Discipline? Investor Expectations of Implicit State Guarantees”

Deniz Anginer (Virginia Tech) with Viral V. Acharya and A. Joseph Warburton

 Bank Rescues and Bailout Expectations: The Erosion of Market Discipline During the Financial Crisis

Alexander Schmidt (Bundesbank) with Florian Hett 

Government Guarantees and Bank Risk Taking Incentives

Jörg Rocholl (ESMT) with Markus Fischer, Christa Hainz and Sascha Steffen

Convertible bonds and bank risk-taking

Natalya Martynova (De Nederlandsche Bank ESMT) with Enrico Perotti

How to finance SIFIs

Jean-Charles Rochet (University of Zürich) with Yalda Sigrist-Zargari

Policy panel: “Ending too-big-to-fail: would the TLAC do the trick?

with Douglas Gale (Professor, Imperial College London), Elke König (President, BaFin), Christian Noyer (moderator — Governor, Banque de France) Markus Ronner (UBS)