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
How should the US and other governments respond? Â»How should the US and other governments respond?
Measures to alleviate the immediate symptoms? Â»Measures to alleviate the immediate symptoms?
Captial Injection in return for stock Â»Captial Injection in return for stock
Avoids moral hazard
Dilutes existing shareholders Â»Dilutes existing shareholders
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