{"id":1195,"date":"2012-11-27T18:31:25","date_gmt":"2012-11-27T16:31:25","guid":{"rendered":"http:\/\/boilingfrogs.stanislasjourdan.fr\/?p=1195"},"modified":"2012-11-27T18:31:25","modified_gmt":"2012-11-27T16:31:25","slug":"banks-recapitalization-plan-greece","status":"publish","type":"post","link":"https:\/\/stanislasjourdan.fr\/en\/2012\/11\/27\/banks-recapitalization-plan-greece\/","title":{"rendered":"A simple &amp; powerful solution for banks&#8217; public recapitalization"},"content":{"rendered":"<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-1198\" title=\"greek-bank\" src=\"http:\/\/stanislasjourdan.fr\/wp-content\/blogs.dir\/2\/files\/2012\/11\/greek-bank-300x207.jpg\" alt=\"\" width=\"300\" height=\"207\" \/><\/strong><\/p>\n<p><strong>There is a simple solution for managing a public banking sector recapitalization without merely giving a free lunch to bankers : distribute equity to the People.<!--more--><\/strong><\/p>\n<p>So Greece will get \u20ac44bn more from the <a title=\"bailout greece unfair\" href=\"http:\/\/www.spiegel.de\/international\/europe\/euro-zone-finance-ministers-avert-greek-bankruptcy-in-marathon-talks-a-869487.html\">last bailout plan<\/a>&#8230; for the Greeks ? Obviously not : \u20ac23.8bn will directly go for private banks recapitalization, most of the rest will go to debt repayments.<\/p>\n<p>Long story short: again, we are giving free money to bankers with more public debt that citizens are kindly asked to repay.<\/p>\n<p>&#8220;Otherwise the banks would go bankrupt&#8221;, they say.<\/p>\n<p>OK, but this is not a sufficient pretext for giving money without any compensation for citizens who are paying the price for it. Otherwise, this is pure moral hazard, without any kind of\u00a0responsibility\u00a0involved.<\/p>\n<p>Fortunately, <strong>there is a very simple solution<\/strong> : ok, let&#8217;s recapitalize the banks&#8230; but in compensation for the extra and unfair support given by the Public to private bankers, <strong>let&#8217;s then\u00a0distribute free banks&#8217; equity shares <strong>(newly created)<\/strong>\u00a0to EVERY greek citizens.<\/strong><\/p>\n<p>That way, not only People will have a voice at the banks&#8217; general assemblies (while diluting the share of ancient shareholders &#8211; those who failed managing the bank), but also if greek banks get profitable someday, then every greek citizens would get some dividend for it.<\/p>\n<p>Last but not least, this might disincentive some people to withdraw their money from their bank, now that they have a stake in it.<\/p>\n<hr \/>\n<p>Picture credit:\u00a0<img decoding=\"async\" title=\"Paternit\u00e9\" src=\"http:\/\/l.yimg.com\/g\/images\/cc_icon_attribution_small.gif\" alt=\"Paternit\u00e9\" border=\"0\" \/><img decoding=\"async\" title=\"Partage selon les Conditions Initiales\" src=\"http:\/\/l.yimg.com\/g\/images\/cc_icon_sharealike_small.gif\" alt=\"Partage selon les Conditions Initiales\" border=\"0\" \/>\u00a0<a title=\"greek banks bankrupt\" href=\"http:\/\/www.flickr.com\/photos\/0742\/4386566455\/\">underclassrising.net<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a simple solution for managing a public banking sector recapitalization without merely giving a free lunch to bankers : distribute equity to the People.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[1],"tags":[370,350,14,388],"class_list":["post-1195","post","type-post","status-publish","format-standard","hentry","category-blog","tag-banks","tag-eurozone-crisis","tag-greece","tag-moral-hazard"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2om4O-jh","_links":{"self":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/1195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/comments?post=1195"}],"version-history":[{"count":0,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/posts\/1195\/revisions"}],"wp:attachment":[{"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/media?parent=1195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/categories?post=1195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stanislasjourdan.fr\/en\/wp-json\/wp\/v2\/tags?post=1195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}