Banks Need Fewer Carrots and More Sticks

R. Glenn Hubbard, Hal Scott, and Luigi Zingales
Wall Street Journal; May 6th, 2009

The results of bank stress tests — expected tomorrow — will no doubt prompt calls for further government guarantees and capital injections. But continuing to prop up the banks with government cash is a mistake. There is a better approach.

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CONTRIBUTOR
Robert C. McCormack Professor of Entrepreneurship and Finance
David G. Booth Faculty Fellow


RESEARCH INTERESTS
Theory of the firm
Relationship between organization and financing
Going-public decisions