Following the financial crisis of 2007, America’s banks have bounced back faster than those in Europe. There’s little dispute as to how this happened. The authorities in the US moved faster to recapitalise banks than their counterparts in Europe. In the US, the government pumped $245 billion into banks. The banks eventually repaid $275 billion, including interest and dividend.
There had been colossal failures in both management and governance at American banks. Yet, nobody argued that recapitalisation should be held back until these were overhauled. The rule in a financial crisis is simple enough: Recapitalise as quickly as you can. At
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