Is recapitalizing and rationalizing banks the same as letting them fail and injecting money into them?Is letting banks fail and injecting money (temporarily) into them pretty much the same as recapitalizing and rationalizing banks? http://youtube.com/watch?v=7dxiz1_bkO4&feature=channel_page | |
If by letting banks fail you mean having them declare bankruptcy, then no. Bankruptcy has all sorts of legal, business, and social implications.
http://en.wikipedia.org/wiki/Too_Big_to_...
http://nytimes.com/2008/07/20/weekin...
http://brookings.edu/press/Books/200...
There are reasons that the Obama administration chose not to let the big banks fail and declare bankruptcy and it was not just because the bank stockholders were big campaign donors.
