Sunday 7 October 2007

What Happens to a Bank With a Failed Business Model

The depositers should be protected, the shareholders should take their losses, and the managers should go to jail. Greenspan on Northern Rock and its ilk.

2 comments:

Nick Drew said...

I think that about sums it up

Except ... what of the 'designers' of the disfunctional regulatory framework ?

hatfield girl said...

That would be our Leader ND, who failed to ensure the transfer of the macro economic research department to a regulatory structure essentially concerned with macro economics.
Of course, some do not accept that the failure of Northern Rock has any systemic financial characteristics at all, any more than did Barings. Me, for instance.