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The obvious way to wipe out both shareholders and keep the bank functioning is to supply capital to the bank, but take ownership in return. As the bank is worth
by yxhuvud 10y ago
The obvious way to wipe out both shareholders and keep the bank functioning is to supply capital to the bank, but take ownership in return. As the bank is worth less than 0 before the bailout (or one wouldn't be necessary) it would be a total wipeout of shareholders.