Allen, Jason; Clark, Robert; Hickman, Brent R.; … - 2019
The FDIC resolves insolvent banks using an auction process in which bidding is multidimensional and the rule used to … evaluate bids along the different dimensions is proprietary. Uncertainty about the scoring rule leads banks to simultaneously … submit multiple differentiated bids. This resolution mechanism typically results in considerable losses for the FDIC-$90 …