Abstract

http://ssrn.com/abstract=2274044
 


 



Financial Sector Reform after the Crisis: Has Anything Happened?


Alexander Schäfer


University of Mainz - Faculty of Law and Economics

Isabel Schnabel


University of Mainz - Faculty of Law and Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods

Beatrice Weder


University of Mainz - Department of Economics

May 24, 2013


Abstract:     
We analyze the reaction of stock returns and CDS spreads of banks from Europe and the United States to four major regulatory reforms in the aftermath of the subprime crisis, employing an event study analysis. In contrast to the public perception that nothing has happened, we find that financial markets indeed reacted to the structural reforms enacted at the national level. All reforms succeeded in reducing bail-out expectations, especially for systemic banks. However, banks’ profitability was also affected, showing up in lower equity returns. The strongest effects were found for the Dodd-Frank Act (especially the Volcker rule), whereas market reactions to the German restructuring law were small.

Number of Pages in PDF File: 46

Keywords: financial sector reform, financial stability, Dodd-Frank Act, Volcker rule, Vickers reform, German restructuring law, Swiss too-big-to-fail regulation, event study

JEL Classification: G21, G28

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Date posted: June 6, 2013  

Suggested Citation

Schäfer, Alexander and Schnabel, Isabel and Weder, Beatrice, Financial Sector Reform after the Crisis: Has Anything Happened? (May 24, 2013). Available at SSRN: http://ssrn.com/abstract=2274044 or http://dx.doi.org/10.2139/ssrn.2274044

Contact Information

Alexander Schäfer
University of Mainz - Faculty of Law and Economics ( email )
D-55099 Mainz
Germany
Isabel Schnabel (Contact Author)
University of Mainz - Faculty of Law and Economics ( email )
D-55099 Mainz
Germany
+049 (0) 6131 39 24191 (Phone)
+049 (0) 6131 39 25588 (Fax)
HOME PAGE: http://www.financial.economics.uni-mainz.de
Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )
Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany
+49-228-9141665 (Phone)
+49-228-9141621 (Fax)
HOME PAGE: http://www.coll.mpg.de/team/page/isabel_schnabel

Beatrice Weder di Mauro
University of Mainz - Department of Economics ( email )
D-55099 Mainz
Germany
+49 613 1392 0144 (Phone)
+49 613 1392 5053 (Fax)
Feedback to SSRN


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