Great idea! Let bank owners bear losses
File this under: Why didn’t I think of this before?
Oct. 23 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke called on Congress to ensure that the costs of closing down large financial institutions are borne by the industry, not taxpayers.
The Fed chairman called for a “credible process” for imposing losses on the shareholders and creditors, saying “any resolution costs incurred by the government should be paid through an assessment on the financial industry.”
via Bernanke Says Financial Firms Should Pay for Closings (Update1) – Bloomberg.com.
And don’t forget to let the industry pick up the tab for bailouts, not just shut-downs.
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