I have a solution to the banking crisis. It’s still going to cost a boatload of money but I expect a more positive return.
A financial (or other) institution may only receive a loan if it’s co-signed by the company’s officers and board.
In this way golden parachutes become less meaningful in the present and only valuable if the company itself is valuable. I’m sure my financially savvy friends will find a reason to dislike this and maybe it is too simplistic, but I think it will work. It will certainly cut down the number of companies looking for cash.
2 thoughts on “Allow Me To Solve The Banking Crisis”
Who would, in their right mind, run the banks?
Those of us who are judgment proof. I would move to Florida to protect my pensions and homestead. That would be enough for me.
Problem is, most of the people qualified to run a bank correctly are not judgment proof and are personally risk averse.
Your point about accountability is well-taken. It used to be that lending was local, bankers knew their personal and business clients- and they’d get fired if they blew it!!! Remember those days? I borrowed money through a local mortgage broker out West from a lender in Wisconsin who sold the loan to a bigger lender within a month. It’s probably now buried in some mortgage-backed security.
You can’t do that as easily any more- you need national markets for acquiring deposits and lending to make things work.
I think my solution would be to put random blog-commenters in charge of everything. We know it all, don’t we?
this is the most ridiculous idea i have ever heard