Effects of bailout legislation: implications from the stock market for thrift shareholders
Article Abstract:
Return responses for portfolios of thrift stocks to news events on bailout funding leading to and ending with the enactment of the Competitive Equality Banking Act of 1987 are examined to determine the differential effects of bailout legislation on well-capitalized versus under-capitalized thrifts. Findings show that capitalization levels determine the reaction of thrifts to legislative news events. This is gleaned from abnormal returns of portfolios of relatively well-capitalized and under-capitalized thrifts, trends in the size of abnormal returns and opposite signs of abnormal returns for relatively well-capitalized versus relatively under-capitalized portfolios.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1996
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The influence on Congress by the thrift industry
Article Abstract:
An analysis is done to investigate the influence of the thrift industry on Congress in the context of the voting behavior on regulatory policy changes during the 1980s. The degree of influence that the insufficiently capitalized part of the thrift industry exerted on the House of Representatives is particularly addressed. The three legislative acts which enabled the thrift industry to influence Congress are the Garn-St. Germain Act, the Competitive Equality Banking Act and the Financial Institutions Reform, Recovery and Envorcement Act.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1996
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Thrift size, risk-taking and return performance
Article Abstract:
The performance of thrift institutions based on their risk-taking and return performance in a semi-regulated environment has been analyzed. Correlation analysis of performance and size of thrifts found an inverse relationship, with return performance and risk-taking on the increase compared to the small size of thrifts. This relationship is surmised to stem from the self-serving behavior of entrenched management teams which invested thrift resources in real estate equity.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1997
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