From a profile of Elizabeth Warren, who heads up the panel in charge of distributing TARP funds:
While the bubbly and brilliant 69-year-old professor is a darling of Democrats, Warren has become the scourge of conservative Republicans, who question her panel’s exploration of more-liberal approaches such as nationalization and bank liquidation.
There really are three things that can be done with banks right now: (1) nationalize them, (2) liquidate them (either via a government-led taker-over or by letting them slide into bankruptcy), and (3) keep propping them up.
I don’t have a strong opinion as to which is best, other than believing — as nearly all sane people do — that letting banks like BoA and Citi slide into bankruptcy would be catastrophic.
It was only a few weeks ago that John McCain and Richard Shelby were chanting “let them fail” during the Sunday morning gabfests. And now liquidation is “more-liberal”?
What are the more-conservative approaches?Post + Comments (49)