Recall this post from six years ago. Òscar Jordà, Björn Richter, Moritz Schularick, and Alan M. Taylor suggest that higher bank capital ratios help stabilize the financial system ex post but not ex ante, and that illiquidity breeds fragility.
Tag Archives: Insolvency
Air Berlin’s Insolvency
In the FT, Mark Odell, Nick Megaw, and Stefan Wagstyl report about Air Berlin’s (ABX:GER) insolvency. This outcome will barely surprise Air Berlin passengers.