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A Two-Sided Auction for Legacy Loans

Peter Cramton, University of Maryland

Abstract

On Monday, 23 March 2009, Treasury Secretary Geithner presented the Public-Private Investment Program as a key instrument to resolve the financial crisis (www.financialstability.gov). The Treasury’s description still leaves many issues unanswered. We flesh out the auction design for legacy loans. A two-sided auction is required. Both banks and private investors must compete in a transparent and competitive process.

Suggested Citation

Peter Cramton. 2009. "A Two-Sided Auction for Legacy Loans" The Selected Works of Peter Cramton
Available at: http://works.bepress.com/cramton/156