PACKAGE BIDDING IN THRIFT RESOLUTIONS

We evaluate the practice of package bidding used to resolve the large number of failed thrifts in 1988. Our results, based on a data set fro m the ''Class of 1988'' that includes details of the bidding process, suggest that package bidding produces a reduction in resolution costs to the government insuring agency. Package bidding also appears to pro duce more qualified bidders (JEL G21, G28). These results suggest that policy makers should consider packaging failed depository institution s as a resolution option in dealing with future failures.