Bad Bank - about time

[Tim Reucroft]

The US looks like it is finally getting around to setting up a bad bank to hold all the toxics.
They should have done this in September 2007 (not 2008 even).

For those old enough to remember we had a similar issue with toxic financials during the Savings & Loans crisis in the 1980s (a US product they failed to export). What they did then was create Resolution Trust Company to hold all the bad loans and let them wind out. Do you remember the finanical crisis of the 1980s? No, because there wasn't one - the people in charge then seemed to know what they were doing.

[Simon Thomas]

When I was at DIBC we wrote the papers (1993) for good bank /bad bank for the Governments of Norway and Sweden - they came through it but it was a bitch and nearly everyone in those countries lost all their shares in their banks.