Spiegel, Mark (contributor) - 2000 - [Elektronische Ressource]
is to address an adverse selection problem, rather than moral hazard. By
offering bailout terms consistent with the … bank’s financial health.
They design a bailout scheme which induces the manager to reveal the bank’s
true underlying …
states. Section 4 introduces the possibility of an ILLR bailout subject to a run,
and determines the constraint faced by the …