Acharya, Viral V. (contributor); … - 2006
bank, liquidation to outsiders and bailout
entail welfare losses. In particular, assumption (i) generates an allocation ine … worse than liquidation values.2 In this case, the only credible
mechanism through which the central bank can implement low … liquidation
values because they may su�er from ��re-sale�discounts in cash auctions for asset sales, espe-
cially when �rms within …