FSLIC’s Acquisition Process

In the remainder of this report we describe and analyze FSLIC’s resolution methodology and the application of this methodology during the 1988 calendar year. In this Chapter we analyze the competitive bidding and negotiation process used by FSLIC. The methods used to evaluate the bids and to compare them with the option to liquidate are evaluated in Chapter 5. Empirical analysis of the results of the 1988 resolution process are then presented in Chapter 6.