/biz/ - Business & Finance

>>57421543
hr called me saying I apply to too many jobs. At least I got an interview lol

I think I figured this shit out:

>FED as a "lender of last resort" should implement a "line of credit of last resort" charging at least bank prime (a neutral rate for the bank, a positive rate for the people)
>Regulators or people named by the FED should take over the bank's management and oversee it
>FDIC would have to guarantee all deposits (capital injection won't work if there are still bank runs)
>FED sells the bank once their money is recovered and bank's business model is stable.
>Old management should be forever banned from financial industry work. Not even as bank tellers they could find a job.

Two points I am not so sure yet:
>Old management could be liable or investigated (?)
I am not too sure how this one would go yet, but it would be handled in court. Basically the idea is to create deterrence for management to be greedy/retarded.
>Stock should stop trading on the day regulators take over and "liquidated" using the balance sheet on that day PRIOR to capital injection.
If the value is zero so be it. That's how it should be under capitalism. After the "liquidation" the bank is pretty much FED property (I wouldn't call nationalization of the bank since the idea is to sell) and can be sold to the public or other banks.

It's basically an LBO.

Shareholders should get only what they deserve because that is capitalism.
Management should be banned from financial industry, investigated and maybe fined (to create deterrence in the future).
Depositors should be 100% insured because that is the only way fractional-reserve system can work. And desu, fractional reserve system is a great approach to banking in our modern economy, so I wouldn't blame that.
And the tax payer does not spend a dime because the FED gets the money from private lenders. Even if there is tax dollars being poured, the tax payer makes interest at prime.

I think I covered all the game theory around this shit. Now replace me with Jerome please.

I am up 7% this week amid the carnage and yet I am sad because I know I could be up 10% had I not sold SPXS so early today