Avoiding Bank Failures Without Minimum Capital Ratios
Reader comment on: Misunderstanding Financial Crises
Submitted by David Weinkrantz (United States), Nov 2, 2012 21:08
To avoid bank failures without minimum capital ratios, I would hold senior bank officers and bank directors jointly & severally liable for the liabilities of the bank . I believe they would then the manage the bank in such a way as to avoid bank failures.
The investment banks used the same system with great success back when they were partnerships.
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