@article{TEXTUAL,
      recid = {4972},
      author = {Diamond, Douglas W.},
      title = {Should Banks Be Recapitalized},
      journal = {Economic Quarterly},
      address = {2001},
      number = {TEXTUAL},
      abstract = {When a bank is a relationship lender, its financial health  affects its borrowers’ access to credit. If regulators or  depositors might close a bank, it will take any action  necessary to remain open. This leads to excessive  foreclosure of the bank’s relationship-based loans or to  the bank’s inability to collect existing loans due to its  fear of accounting losses if it forecloses.  Recapitalization of banks possessing relationship-based  loans can be good policy. However, providing a positive but  too small amount of capital can be worse than providing  none. There is no reason to provide subsidized capital to  banks without relationship-based loans.},
      url = {http://knowledge.uchicago.edu/record/4972},
}