25-73 Which of the following is NOT a reason for using a bad bank as a vehicle to add value in the loan sale process?

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The use of a bad bank can increase information asymmetries between the good bank and potential investors, making it more difficult for the good bank to accurately value its assets and potentially leading to lower market performance. A bad bank, however, can still be used to manage bad assets, create contracts for managers, and improve the perception and performance of the good bank by removing bad loans from its balance sheet. The statement "the bad bank does not need to be concerned about liquidity needs since it does not have any deposits" is true, but it is not a reason for using a bad bank as a vehicle to add value in the loan sale process.

25-73 Which of the Following Is NOT a Reason for Using