Resolution of Insolvent Thrifts: Fundamental Issues

  • Roger C. Kormendi
  • Victor L. Bernard
  • S. Craig Pirrong
  • Edward A. Snyder
Part of the Innovations in Financial Markets and Institutions book series (IFMI, volume 3)

Abstract

Once insolvent thrifts are under its control, FSLIC must provide financial assistance to induce others to assume deposit liabilities. But how should FSLIC use its primary resolution alternatives -- assisted acquisition and liquidation -- to minimize the cost of meeting its obligations to depositors? Should FSLIC liquidate all insolvent thrifts? If only some, which ones? In this section we discuss principles that should guide the resolution process and thereby establish a basis for our substantive analysis in Chapters 4 through 6 that follow.

Keywords

Resolution Process Funding Constraint Competitive Bidding Bidding Process Cash Reserve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1989

Authors and Affiliations

  • Roger C. Kormendi
    • 1
  • Victor L. Bernard
    • 1
  • S. Craig Pirrong
    • 1
  • Edward A. Snyder
    • 1
  1. 1.University of MichiganUSA

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