I understand the logic of bailing out the banks themselves. But why couldnt the bailouts come with many strings, i.e. your leadership is all fired and they must return bonuses? Wouldnt this have the desired deterrent effect without the costs of the banks actually failing?
If they couldnt let the banks fail during the GFC, why couldnt they let the bankers fail?
byu/muel87 inAskEconomics
Posted by muel87
1 Comment
Lots of banks fired many people and went through major restructuring or were bought up and/or closed.
But keep in mind that the GFC had many, many causes without individual people really being “responsible” so it doesn’t exactly make sense to fire people for cause in that sense.
https://www.reddit.com/r/Economics/wiki/faq_financial_crisis/