economic theory

I

iarladavo

Guest
Just wondering is there any economic theory out there about "Bad Banks"?
 
BoE: Causes of Management of Banking Crises:
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BoE: Resolution of Banking Crises: A Review:
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Cleveland Fed: The Swedish Bank Crisis:
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That sort of thing?
 
Yes they are helpful, but more looking for I suppose from an economist view why a bad bank should work, is there any fundamental reasons?or even any simplistic models out there?
 
There isn't, as far as I can see (I have looked). I suspect it is because the answer is unpalateable - a bad bank works for certain sectional interests, by penalising other sectional interests.

Guess which sectional interest taxpayers are...
 
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