tag:blogger.com,1999:blog-1194375569044391746.post2183260489061001051..comments2024-03-29T11:06:28.120-04:00Comments on Corporate Justice Blog: Beware the Zombie Banks!Steven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1194375569044391746.post-4001742643863186382009-08-05T04:33:21.533-04:002009-08-05T04:33:21.533-04:00My thought would be that many companies that were ...My thought would be that many companies that were bailed out would not be bailed out under my proposal. I think it is hard to conclude which is which without a detailed analysis. Perhaps Goldman is saved but Citi is not.<br /><br />Note also that under my proposal there should never be any bailout. Before that happens a regulatory authority should order divestitures. Further once the tax is levied I would wring all the profit out of being too-big-to-fail. The user fee would no doubt lead to divestitures and managers would lose the protection of the PSLRA and now face the prospect of fines and criminal sanctions. Creditors would see risks that bailout money may not ultimately be available. All of this is designed to assure that no actor can really gain much from a firm that is too-big-to-fail.<br /><br />So, hopefully New York never is faced with this kind of disruption again, under my proposal.Steven Ramirezhttps://www.blogger.com/profile/16741346526253732489noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-31898905298466789202009-08-03T21:45:33.111-04:002009-08-03T21:45:33.111-04:00Excellent proposal. What would have happened with...Excellent proposal. What would have happened with Chrysler & GM under your proposal? The companies, now that they are smaller, seem viable, and they seem to be heading towards profits. But their failure may not have presented a severe economic disruption - at least not nationally. Would a severe disruption in local economies count under your proposal?Cheryl L. Wadehttps://www.blogger.com/profile/08182167772552050045noreply@blogger.com