ABSTRACT

Th e purpose of this study is to examine the eff ect of the monetary actions of the Fed during the subprime crisis on stock prices of fi nancial institutions in the United States and to examine whether the Fed has been successful in its eff orts to restore the confi dence of investors in the market. We will also link the stock reactions of the fi nancial institutions to company-specifi c variables, in order to see which institutions profi ted the most from the Fed’s interventions.