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No. Half of Europe's big banks would have been taken into receivership (because Europe actually has very sensible policy of vesting standing authority in various regulatory bodies to take insolvent financial institutions into receivership). A handful of smaller banks would have been killed off too, but nothing catastrophic.

Villager concern trolling notwithstanding, Frankfurt, London and New York are not the be-all-end-all of the banking system.

And Villager concern trolling notwithstanding, there is nothing that prevents the state from decisively stopping a cascading bank failure under existing law. All it requires is a willingness to tell the shareholders, the management, the hedge funds and a couple of the transnationals to take a long walk on a short pier. In short, to bankrupt a couple of score Villagers rather than bankrupting the country.

But I can see why that might be too strident and uncouth to ask demand that of our political class.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Dec 20th, 2009 at 10:58:15 AM EST
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