Furthermore, settlement proceedings and loss-share rules in case of insolvency were agreed in advance among market participants, and these functioned well. Because of these various responses, payment and settlement of domestic transactions were conducted generally smoothly in Japan. While it might sound unusual, it is of critical importance that bankruptcy be conducted skillfully without causing any trouble to the financial system as a whole.
In the current financial crisis, Lehman Brothers filed for insolvency, while many financial institutions in the United States and Europe were nationalized or received public capital infusion.