Greenboard Diagram: When could a bankruptcy become a bailout?

And this is the reason to oppose any repeal of the Dodd Frank Act orderly liquidation authority for banks and financial institutions.   Those best served by the bankruptcy option are the bank executives, bank shareholders, other banks, creditors, and the battalions of bankruptcy attorneys who will sort the mess.   Those least well served are the American taxpayers.

The resolution option lets capitalism be capitalism — the well managed and strong survive and it is assumed that all investments, even shares of bank stock constitute a risk for which the American taxpayer should not be on the hook.

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