Schäfer, Dorothea; Zimmermann, Klaus F. - Institute for the Study of Labor (IZA) - 2009
place toxic assets in one or more bad banks has gained steam in recent weeks. The following paper presents a plan how … governments can efficiently relieve ailing banks from toxic assets by transferring these assets into a publicly sponsored work …-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value …