... this is why I suggest that €1:€1, the acquisition of assets be matched by the issue of Senior Preferred shares, at a penalty dividend rate over the rate of the government bonds funding the acquisition, with heavy strings attached to non-performing Preferred dividends, and with warrants for further Senior Preferred shares on the net loss on the acquired assets.

That provides liquidity, and shifts the balance sheet from debt to equity making the bank a better risk for lending to, and takes the warehousing of sine if the dubious assets off the banking sector's balance sheet where it can easily act as a drag on credit for quite a long time.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.