This broad political consensus was I believe of vital importance and made the prompt handling of the financial crisis possible. The bank guarantee provided protection from losses for all creditors except shareholders. The Government’s mandate from Parliament was not restricted to a specific sum and its hands were also very free in other respects.
This necessitated close cooperation with the political opposition in the actual management of the banking problems. The decision was of course troublesome and far-reaching. Besides involving difficult considerations to do, for example, with the cost to the public sector, it raised such questions as the risk of moral hazard.