Market Value Approach Better Than Gordon Growth for Failed Bank

Business Valuation UpdateVol. 17 No. 11
Legal and Court Case Update
November 2011

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6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
winstar
AmBase Corp. v. United States
2011 WL 3891942 (Fed. Cl.)
August 31, 2011
US
Federal Court
United States Court of Federal Claims
Charles Calomiris (plaintiffs); Anthony Saunders and Roy Smith (defendant)
Smith

Summary

Federal Court of Claims accepts market value approach to valuing failed thrift in Winstar case and rejects Gordon growth model for failing to account for bank’s unstable earnings and its alternative investment opportunities in a “non-breach” world.

See Also

AmBase Corp. v. United States

Full Text of Court Cases
August 31, 2011

Federal Court of Claims accepts market value approach to valuing failed thrift in Winstar case, and rejects Gordon Growth model for failing to account for bank’s unstable earnings and its alternative investment opportunities in a “non-breach” world.