NERA Releases White Paper on US Financial Bailout Reverse Auction Plan

2008-09-28 18:58:02 -

www.nera.com - NERA Economic Consulting Benjamin Seggerson, +1 202-466-9232 (office) +1 202-758-5441 (weekend contact number) Public Relations Manager ben.seggerson@nera.com A new paper on reverse auctions, the cornerstone of the financial bailout plan currently being promoted by Treasury Secretary Henry Paulson and hotly debated on Capitol Hill, was published today by NERA Economic Consulting.

Buying the Bad Stuff: Implementation Considerations

for the Paulson Plan offers a comprehensive overview of reverse auctions. The paper examines the complexity of valuing mortgage-backed securities, and the various options for designing the auctions under which the government will buy the bad debt.

"The way the auctions are designed will be critical in determining the incentives of bidders to compete, the degree of price discovery, and ultimately the success of the program," said NERA Senior Vice President Dr. Chantale LaCasse, one of the paper's co-authors.

Dr. LaCasse is an expert in designing, implementing, and managing auctions, and has extensive experience doing so with energy products. She has also testified as an expert witness on auction design and rules related to auction implementation.

Dr. LaCasse is available to comment further.

Buying the Bad Stuff: Implementation Considerations for the Paulson Plan may be viewed on the NERA website at www.nera.com/publication.asp?p_ID=3589.

About NERA

NERA Economic Consulting (www.nera.com) is an international firm of economists who understand how markets work. Founded in 1961 as National Economic Research Associates, our more than 45 years of experience creating strategies, studies, reports, expert testimony, and policy recommendations reflects our specialization in industrial and financial economics. Our global team of more than 600 professionals operates in over 20 offices across North America, Europe, and Asia Pacific.

Auction Expert Available to Comment