“set to call for shareholders in those institutions to be wiped out. ‘It is crucial for these things to happen’”
How about a stiff haircut for the bondholders and defaults on the credit default swaps held by JP Morgan and Goldman Sachs?
It will be most interesting to see how Tim Geithner and Larry Summers respond to this advice from Congressional oversight.
US watchdog calls for bank executives to be sacked
Elizabeth Warren, chief watchdog of America’s $700bn (£472bn) bank bailout plan, will this week call for the removal of top executives from Citigroup, AIG and other institutions that have received government funds in a damning report that will question the administration’s approach to saving the financial system from collapse.
Guardian.Co.Uk Photo via Jesse’s Amercain Cafe!
She said she did not want to be too hard on Geithner but that he must address the issues in the report. “The very notion that anyone would infuse money into a financially troubled entity without demanding changes in management is preposterous.”
