Such recapitalization with the state budget should come with a commitment by the management of the recipient bank to take due responsibilities and its existing shareholders to incur possible losses. I believe these generic principles still hold true in today’s environment.
But in hindsight, I have to admit that they are only part of more comprehensive strategies for dealing with a fullblown financial crisis like the one we are witnessing. We need to ask ourselves why such comprehensive policies were not implemented in a timely manner.