http://www.creditwritedowns.com/2009/06/repayments-will-make-banks-weaker-and-could-lead-to-more-failures.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 http://www.creditwritedowns.com/2009/06/repayments-will-make-banks-weaker-and-could-lead-to-more-failures.html#comment-5500 Is it really “giving back the money” if banks will just have to ask for it again? » New Deal 2.0 Fri, 12 Jun 2009 18:34:53 +0000 http://www.creditwritedowns.com/2009/06/repayments-will-make-banks-weaker-and-could-lead-to-more-failures.html#comment-5500 [...] There is a good video from Bloomberg News, in which Boston University Professor Mark Williams argues along similar lines.  He goes as far as to say that allowing repayment now could sew the seeds of bank failures down the line.  It is very understandable that these banks want to pay back the $68 billion, but it is the job of government to regulate so as to prevent systemic risk. [...] [...] There is a good video from Bloomberg News, in which Boston University Professor Mark Williams argues along similar lines.  He goes as far as to say that allowing repayment now could sew the seeds of bank failures down the line.  It is very understandable that these banks want to pay back the $68 billion, but it is the job of government to regulate so as to prevent systemic risk. [...]

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