It’s not too late to enact a better plan than the one the Treasury has put on the table. Peter Lee looks at alternative strategies that might prove sharper than Paulson’s bailout plan.
If the federal government believes that it must recapitalize the banking system, then it should do so directly by investing equity in the banks. Buying troubled assets at above market prices achieves much the same thing – it hands capital to the banks and transfers risks of loss to the public purse.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
