Sentences with phrase «defending bondholders»

The misguided policy of defending bondholders against losses with public funds has increased uncertainty, crowded out private investment, harmed consumer confidence, and prompted defensive saving against possible adversity.

Since early 2008, beginning with the provision of non-recourse funding in the Bear Stearns debacle, the Federal Reserve and the Treasury have repeatedly allocated or implicitly obligated public funds to defend the bondholders of mismanaged financial companies.

I could admittedly do better, and would certainly have captured more upside from temporary speculation, had I committed myself to the principle that central banks will act strictly to defend the bondholders of the banks they represent, even if it means trespassing into fiscal policy, subordinating public interest, empowering the worst stewards of capital, violating legal restrictions, and inviting long - term instability.

While I correctly anticipated the credit crisis (see Critical Point for a reminder), the unwise response of policymakers — defend the bondholders, avoid debt restructuring, change accounting rules, extend, and pretend — virtually ensured years of economic headwinds, and led me to insist on making our approach robust to even Depression - era outcomes.

The sum total of the policy responses to this crisis has been to defend the bondholders of distressed financial institutions at public expense.

But to defend all bondholders of financial institutions at public expense is to commit the future economic output of innocent citizens to cover the losses of mismanaged financial institutions.

Not exact matches

Receivership involves defending the customer assets, changing the management, wiping out the common stock and a portion of the bondholders» claims, continuing the operation of the institution in receivership, and eventually selling or reissuing the company to private ownership, leaving the bondholders with the residual.