This Essay analyzes how government intervention in the market for banks' troubled assets is best designed, and also uses this analysis to evaluate the public-private investment program announced by the U.S. government in March 2009. I begin by presenting the case for using government funds to restart the market for troubled assets. I then discuss the advantages of providing government capital to competing privately managed funds--a strategy I have advocated in past work--and I outline the key elements that such a plan should include.
Lucian A. Bebchuk,
Buying Troubled Assets,
Yale J. on Reg.
Available at: http://digitalcommons.law.yale.edu/yjreg/vol26/iss2/4