03-05-2009, 10:11 PM
Proposed solution from Robert Johnson, former chief economist for Senate banking committee.
Make top 5 banks mark their assets to markets rates which shows that they are insolvent. Insolvent banks = FDIC intervention=shitcan the execs of these banks, seize assets, insure first 250k and 50% of deposits there after. After balance sheet is restored, FDIC sells back stake in banks. Small ex. of FDIC intervention would be Indymac.
here's an article from the nation:
http://www.thenation.com/doc/20081006/ferguson_johnson
Make top 5 banks mark their assets to markets rates which shows that they are insolvent. Insolvent banks = FDIC intervention=shitcan the execs of these banks, seize assets, insure first 250k and 50% of deposits there after. After balance sheet is restored, FDIC sells back stake in banks. Small ex. of FDIC intervention would be Indymac.
here's an article from the nation:
http://www.thenation.com/doc/20081006/ferguson_johnson
Two feet.