Dollar Dominatrix Has Had It Up To Here [points to head] With This 'Good Bank/Bad Bank' Nonsense

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Must you make her say it again? Stiletto spikes to all of your asses! You think this is funny? You won't be laughing when she administers the testicle clamps!

Talks of creating a "bad bank" are once again gaining momentum, and accordingly, we feel compelled to repeat and review our thoughts on the subject. In brief, simply removing "toxic" assets from bank balance sheets will not directly cause banks to increase lending. Lending standards have tightened dramatically, and there is an unavoidable restructuring of risk taking place. Such causes money to come out of the system and lending to contract, with or without this "bad bank" structure. Lower asset bases, higher credit losses, and bloated expense structures will continue to pressure banks' earnings power and capital creation. We remain cautious on the group.


No Bad Bank Please
[Oppenheimer]

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