It's good to see The Economist's Free Exchange blog get after Simon Johnson for making absolutely no sense. The guy just keeps lobbing up softballs, like this, on CIT:
[I]t would be straightforward to refinance this part of CIT’s business without bailing out CIT’s creditors, and definitely without keeping top CIT executives in place; this is the essence of “negotiated conservatorship,” which is a proven model in the US.
The "negotiated conservatorship" model refers to the resolution of Continental Illinois in 1984. Johnson claims that not bailing out a bank's creditors and firing its top executives is the "essence" of the negotiated conservatorship model. Except, of course, the essence of the Continental Illinois resolution is that the FDIC bailed out Continental's creditors. The fact that the FDIC eschewed the $100,000 cap on deposit insurance and promised to protect all of Continental's depositors and other general creditors is what made it so controversial. So yet again, Johnson has no clue what he's talking about.

5 comments:

Buy WOW Gold said...

Very cool. I always enjoy the interviews. Thanks for having this blog

Anonymous said...

The fact the actual FDIC eschewed the particular cheap D3 Gold $100,000 limit upon deposit insurance plan in addition to assured to safeguard all Continental's depositors and also other normal collectors is the thing that managed to get consequently marked by controversy.Buy Guild Wars 2 Gold And so all over again, Brown doesn't have idea precisely what he has been referring to.

gw2 gold said...

[I]t would be straightforward to refinance this part of CIT’s business without bailing out CIT’s creditors, and definitely without keeping top CIT executives in place; this is the essence of “negotiated conservatorship,” which is a proven model in the US.

gw2 gold
Guild wars 2 gold

Trần Duy Thuận said...

Trần Duy Thuận Blog đang cần nhận gia công tại nhà. Ai có cần người nhận gia công tại nhà tphcm liên hệ mình nhé. Truy cập vào đặt vé máy bay giá rẻ vietjet để có thêm kinh nghiệm khi đi máy bay nhé.

Fire Ball said...

Liệu có nên mua máy giặt cũ, hay tìm mua tủ lạnh cũ ở đâu? Nếu chưa tìm thấy nơi bán thì hãy ghé qua trung tâm điện máy cũ tại thằng ghờm shop. Với những snả phẩm điện máy, điện lạnh cũ, và máy lạnh cũ nội địa chắc chắn sẽ làm bạn hài lòng.


Nếu bạn người thích cập nhật kiến thức mới lạ, hữu ích thì hãy ghé qua chuyên mục tổng hợp kiến thức nơi tìm lời giải đáp cho những thắc mắc như: www là viết tắt của từ gì, deep là gì,...