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Unpublished Paper
Auctions for Injecting Bank Capital (Addendum to 'A Troubled Asset Reverse Auction')
Working Paper, University of Maryland. (2008)
  • Peter Cramton, University of Maryland
  • Lawrence M. Ausubel, University of Maryland
Abstract

Public discussion has turned, in the past few days, toward using some of the $700 billion in rescue funds for the injection of government money into banks in return for ownership stakes. The purpose of this short note, an addendum to “A Troubled Asset Reverse Auction,” is to describe an auction mechanism suitable for injections of capital into banks. The auctions would price the equity purchases through a competitive process.

Publication Date
October, 2008
Citation Information
Peter Cramton and Lawrence M. Ausubel. "Auctions for Injecting Bank Capital (Addendum to 'A Troubled Asset Reverse Auction')" Working Paper, University of Maryland. (2008)
Available at: http://works.bepress.com/cramton/8/