Author Archives: S_Pagratis

About S_Pagratis

Athens University of Economics and Business

Warrant(ed) subsidy?

At a recent New York Times article, it was argued that the value of free warrants offered to participating shareholders in the capital increases of the big three Greek banks constitutes a large wealth transfer from the Greek state to … Continue reading

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Beware the Warrants

Current provisions for a too-early exit of the Hellenic Financial Stability Fund from Greek banks risk creating self-reinforcing market dislocations. By offering too many free warrants to private investors, at predetermined exercise prices, share prices of Greek banks could be … Continue reading

Posted in Banking and finance | 2 Comments

Coordination problems, perverse incentives and the key to Greek recovery: the Greek banking system

Greek banks, like their international peers, have not simply faced the unfortunate consequences of an externally imposed crisis. Coordination problems and perverse incentives in the banking sector, often exacerbated by short-termism in government policies and objectives, led to perpetuation of … Continue reading

Posted in Banking and finance | Tagged | 6 Comments