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I do not know whether it would be good policy, but, oh! man! it would be fun to watch Wall Street bankers try to pay for their golden privies on GS-17 salaries and have to face annual performance evaluations from persons who really don’t like doing evaluations and do them with one eye on the budget and no eyes on performance:
Dealing with the matter all at once can both allow for a quicker fix to the financial system and also ensure fairer treatment of bank creditors. First, the shareholders of bankrupt institutions must be forced to eat their losses. However, we may not want to honour all the debts of the banks at 100 cents on the dollar, which has been current practice.