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No. The government should seize it when the company is seeking a bailout or when the shareholders are unable to raise funds.
by nine_zeros 2y ago
No. The government should seize it when the company is seeking a bailout or when the shareholders are unable to raise funds.
- gruez 2y ago>The government should seize it when the company is seeking a bailout Why would the company seek it when both the shareholders stand to lose everything, and the executives stand to lose everything and then some? It's in their interest to crash it into the ground hoping for a hail mary that would save the company. What this typically manifests as is one day the company announces it ran out of money and is ceasing operations effectively immediately. This is very disruptive to both employees as well as customers/vendors. Letting the executives get off scot free might not seem fair, but it's far better than the alternative.