Auctions for Injecting Bank Capital

Lawrence M. Ausubel () and Peter Cramton
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Lawrence M. Ausubel: Economics Department, University of Maryland, https://www.econ.umd.edu

Papers of Peter Cramton from University of Maryland, Department of Economics - Peter Cramton

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.

Keywords: Auctions; financial auctions; financial crisis (search for similar items in EconPapers)
JEL-codes: D44 G01 G21 (search for similar items in EconPapers)
Pages: 2 pages
Date: 2009, Revised 2009
New Economics Papers: this item is included in nep-ban and nep-mon
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Published in Addendum to A Troubled Asset Reverse Auction, University of Maryland, October 2008

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