TY  - JOUR
AU  - Hoshi,Takeo
AU  - Kashyap,Anil K
TI  - Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14401
PY  - 2008
Y2  - October 2008
UR  - http://www.nber.org/papers/w14401
L1  - http://www.nber.org/papers/w14401.pdf
N1  - Author contact info:
Takeo Hoshi
School of International Relations and Pacific Stud
University of California, San Diego
9500 Gilman Drive
La Jolla, CA  92093-0519
Tel: 858/534-5018
Fax: 858/534-3939
E-Mail: thoshi@ucsd.edu

Anil Kashyap
Booth School of Business
University of Chicago
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-7260
Fax: 773/702-0458
E-Mail: anil.kashyap@chicagobooth.edu
AB  - During the financial crisis that started in 2007, the U.S. government has used a variety of tools to try to rehabilitate the U.S. banking industry. Many of those strategies were used also in Japan to combat its banking problems in the 1990s. There are also a surprising number of other similarities between the current U.S. crisis and the recent Japanese crisis. The Japanese policies were only partially successful in recapitalizing the banks until the economy finally started to recover in 2003. From these unsuccessful attempts, we derive eight lessons. In light of these eight lessons, we assess the policies the U.S. has pursued. The U.S. has ignored three of the lessons and it is too early to evaluate the U.S. policies with respect to four of the others. So far the U.S. has avoided Japan’s problem of having impaired banks prop up zombie firms.
ER  -