Nevertheless this road should be taken in order to strengthen market discipline. I believe that membership in a club comprising the major global players would be a special quality which could actually become attractive for those institutions. Besides, it seems quite conceivable that banking supervision might be willing to grant those institutions more selfregulatory powers.
The case of the Hedge Funds LTCM proves that the private sector can find solutions without having recourse to public funds. At that time, the Federal Reserve Bank of New York was only acting as an intermediary to bring national and international financial institutions together, which then provided the necessary funds.