Abstract

http://ssrn.com/abstract=1476333
 
 

References (8)



 
 

Citations (4)



 


 



Slicing the Toxic Pizza: An Analysis of FDIC’s Legacy Loan Program for Receivership Assets


Linus Wilson


University of Louisiana at Lafayette - College of Business Administration

September 21, 2009

International Journal of Monetary Economics and Finance, Vol. 3, No. 3, pp. 300-309, 2010

Abstract:     
The Legacy Loans Program is an elaborate way of slicing the FDIC’s receivership assets. At best, the financial structure is irrelevant to the FDIC’s expected long-run recovery rates. Yet, it may boost short-term prices by creating bond insurance liabilities that will come due several years down the road. If the private investor can increase the value of the toxic loans through non-contractible investments, then the public equity stake and subsidized leverage may hinder the FDIC from obtaining the best recovery rates from these troubled loan portfolios.

Number of Pages in PDF File: 19

Keywords: FDIC, PPIP, toxic assets, Legacy Loans Program, LLP, Public-Private Investment Partnership, financial crisis, banking

JEL Classification: G01

Accepted Paper Series


Download This Paper

Date posted: September 22, 2009 ; Last revised: April 15, 2012

Suggested Citation

Wilson, Linus, Slicing the Toxic Pizza: An Analysis of FDIC’s Legacy Loan Program for Receivership Assets (September 21, 2009). International Journal of Monetary Economics and Finance, Vol. 3, No. 3, pp. 300-309, 2010. Available at SSRN: http://ssrn.com/abstract=1476333 or http://dx.doi.org/10.2139/ssrn.1476333

Contact Information

Linus Wilson (Contact Author)
University of Louisiana at Lafayette - College of Business Administration ( email )
Department of Economics & Finance
214 Hebrard Blvd., Room 326
Lafayette, LA 70504-0200
United States
(337) 482-6209 (Phone)
(337) 482-6675 (Fax)
HOME PAGE: http://www.linuswilson.com
Feedback to SSRN


Paper statistics
Abstract Views: 1,305
Downloads: 226
Download Rank: 76,553
References:  8
Citations:  4

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.359 seconds