a bailout either if the bank is small in the economy or if the bank is large and the ex ante stability level of the bank …In a global game, I show that creditor bailins, when well-designed, can attain the exact same level of bank stability …

period during which more than 1,300 banks failed. Bank failures are fundamentally important because of the unique role played … during this period. First, commercial real estate was only a factor in the bank failures of 1988-92. Second, construction … loans played a much larger role in bank failures than permanent loans, and the relationship is strongest with construction …