Package Bidding in Thrift Resolutions
J. OF FINANCIAL SERVICES RESEARCH, Vol. 11 No. 3, Summer 1997
Posted: 14 Apr 1998
Package Bidding is a practice by which a package of two or more items is sold off. We evaluate the practice of Package Bidding that was used to resolve the large number of failed thrifts in 1988. Our results, based on a data set from the "Class of 1988" that includes details of the bidding process, suggest that Package Bidding produces a reduction in resolution costs to the government insuring agency. Package Bidding also appears to produce more qualified bidders. These results suggest that policy makers should consider packaging failed depository institutions as a resolution option in dealing with future failures.
JEL Classification: G21, G28
Suggested Citation: Suggested Citation