This time is the same: Do banks learn from crises?: "Ruediger Fahlenbrach, Robert Prilmeier, René M. Stulz, 27 May 2011
Crises are a regular event in financial markets. But do banks that have been hit particularly hard in one crisis learn from the experience and suffer less in future crises? This column suggests not. It shows that banks particularly hard hit by the 1998 financial crisis were also badly affected by the recent financial crisis. It blames the high-risk business models on which these banks rely.
Full Article: This time is the same: Do banks learn from crises?"
Crises are a regular event in financial markets. But do banks that have been hit particularly hard in one crisis learn from the experience and suffer less in future crises? This column suggests not. It shows that banks particularly hard hit by the 1998 financial crisis were also badly affected by the recent financial crisis. It blames the high-risk business models on which these banks rely.
Full Article: This time is the same: Do banks learn from crises?"
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