Bailing out the Banks: Reconciling Stability and Competition

Thorsten Beck, Diane Coyle, Paul Seabright, Xavier Freixas 18 February 2010

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Table of Contents

Introduction

1. Why are banks special?

2. Bank competition and financial stability

3. Origins and initial impact of the banking crisis

4. Bank bailouts: their purpose, risks and implications for burden sharing

5. Competition implications of bailouts

6. An evaluation of DG Competition's strategy

7. Preventing future crises: reforming prudential regulation

8. Conclusions

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