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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Other reader comments on this item

Title By Date
Insolvency rumors lead to liquidity problems and runs. [157 words]LyleNov 2, 2012 22:44
⇒ Avoiding Bank Failures Without Minimum Capital Ratios [61 words]David WeinkrantzNov 2, 2012 21:08
Very Disappointing [52 words]John GillisNov 2, 2012 17:31

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