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Making Sense of the Aggregator Bank

Lawrence M. Ausubel, University of Maryland
Peter Cramton, University of Maryland

Abstract

On Tuesday, 10 February 2009, Treasury Secretary Geithner proposed the aggregator bank ("public-private investment fund") as a key instrument to resolve the financial crisis. He left out many details, so Lawrence Ausubel and Peter Cramton explain how an aggregator bank might operate in practice, and argue that with proper design, such a bank could be better than TARP.

Suggested Citation

Lawrence M. Ausubel and Peter Cramton. "Making Sense of the Aggregator Bank" The Economists' Voice 6.3 (2009).
Available at: http://works.bepress.com/cramton/5