Archive for the ‘Bad bank’ Category
The economics of “Good bank-bad bank”
Economics focus
The spectre of nationalisation
Jan 22nd 2009
From The Economist print edition
From The Economist print edition
There are ways for governments to revitalise banks without taking them over
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IT IS generally easier to remove a kidney from a dead donor than a live one. When regulators in Scandinavia and America in the early 1990s started extracting the bad assets from their crisis-hit banking systems, it helped that the banks they dealt with were bust or in the government’s hands. Today, policymakers are trying to excise toxic assets from banks that are still, at least officially, private and viable. That is a much trickier proposition. Read the rest of this entry »
