Avoids moral hazard
Avoids the moral hazard involved in relieving the banks of the mass of toxic assets acqired through irresponsible behavior.
Immediately related elementsHow this works
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The Global Financial Crisis Â»The Global Financial Crisis
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How should the US and other governments respond? Â»How should the US and other governments respond?
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Measures to alleviate the immediate symptoms? Â»Measures to alleviate the immediate symptoms?
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Captial Injection in return for stock Â»Captial Injection in return for stock
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Avoids moral hazard
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Dilutes existing shareholders Â»Dilutes existing shareholders
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