Bailing out the Banks: Reconciling Stability and Competition

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



Table of Contents


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

Thorsten Beck
Professor of Banking and Finance, Cass Business School; Professor of Economics, Tilburg University; Research Fellow, CEPR
Managing Director of Enlightenment Economics
Dean of the Undergraduate School of Economics and Business Administration and Professor at the Universitat Pompeu Fabra; CEPR Research Fellow
Paul Seabright
Professor of Economics at the Toulouse School of Economics and CEPR Research Fellow