Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan
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Hoshi is affiliated with the School of International Relations and Pacific Studies at the University of California San Diego, National Bureau of Economic Research, and Tokyo Center for Economic Research. Kashyap is affiliated with the University of Chicago Booth School of Business, Federal Reserve Bank of Chicago and National Bureau of Economic Research. Kashyap thanks the Initiative on Global Markets at the University of Chicago Booth School of Business for research support. Earlier drafts of this paper circulated under the titles "Will the TARP Succeed? Lessons from Japan" and "Will the U.S. Recapitalization Succeed? Lessons from Japan." We thank Kanako Hotta, Yian Liu and Ashish Shenoy for excellent research assistance and Peggy Eppink for help preparing the document. We thank Mitsuhiro Fukao, Giovanni Dell'Ariccia, David Greenlaw, Beverly Hirtle, Takatoshi Ito, Hiroshi Osano, Kevin Stiroh and seminar participants at the 2009 ASSA Meeting, the Banque de France, the Bank of Japan, Doshisha University, the European Bank for Reconstruction and Development, the European Commission, the Federal Reserve Bank of New York, the Harvard Law School, Indiana University, the International Monetary Fund, the Ohio State University, NBER 2009 Summer Institute, Princeton University, Tsinghua University, University of Illinois, Chicago and the Yale Law School for useful comments. The views in this paper are those of the authors alone and not the institutions with which we are affiliated, all mistakes are our own.