What is to be done then? Examination of a number of historical episodes suggests that there are three important elements to dealing with a banking collapse. First, the bank regulators must go through the balance sheets, determine the problem loans, take them off the banks’ balance sheets, sell them, and have the public take whatever losses were entailed.
*** Thank you, Lorie, it is great to be here, and to hear the broad range of perspectives that are represented here today.