Market Response to Syndicated Loan Announcements from High‐Profile Failed and Acquiring Banks During the Global Financial Crisis

36 Pages Posted: 19 Mar 2020

See all articles by Dominic Gasbarro

Dominic Gasbarro

Murdoch University

Kim‐Song Le

affiliation not provided to SSRN

Robert Schwebach

Colorado State University

J. Kenton Zumwalt

Colorado State University, Fort Collins - Department of Finance & Real Estate

Date Written: March 2020

Abstract

Previous studies that have examined the impact of the 2008 financial crisis on syndicated loans have ignored potential differences between lending banks by explicitly or implicitly aggregating all lenders together and focusing on borrower characteristics. One must jointly consider both borrower and lender to fully understand the complex role of the syndicate during this period. We consider the identity of the lender, with a focus on five major US banks that failed and their five corresponding acquirers. Our results highlight the distinct roles of investment and commercial banks and facilitate an understanding of relationship and transactional‐based lending.

Keywords: Bank failures, Bank heterogeneity, Financial crisis, Relationship lending, Syndicated loans

Suggested Citation

Gasbarro, Dominic and Le, Kim‐Song and Schwebach, Robert and Zumwalt, J. Kenton, Market Response to Syndicated Loan Announcements from High‐Profile Failed and Acquiring Banks During the Global Financial Crisis (March 2020). Accounting & Finance, Vol. 60, Issue 1, pp. 435-470, 2020, Available at SSRN: https://ssrn.com/abstract=3556111 or http://dx.doi.org/10.1111/acfi.12493

Dominic Gasbarro (Contact Author)

Murdoch University ( email )

South Street
Murdoch 6150, Western Australia
Australia

Kim‐Song Le

affiliation not provided to SSRN

No Address Available

Robert Schwebach

Colorado State University ( email )

Fort Collins, CO 80523
United States

J. Kenton Zumwalt

Colorado State University, Fort Collins - Department of Finance & Real Estate ( email )

Fort Collins, CO 80523
United States

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