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Stable and diligent financial industries

Comments on Karen Maley “Who should pay for the GFC?” 1/04/2010, http://www.businessspectator.com.au/bs.nsf/Article/Who-should-pay-for-the-GFC-pd20100401-442RF?OpenDocument&src=sph

It is nonsensical to suggest that some banks and financial institutions have been bailed out in the GFC, every bank and financial institution should be punished.

Any financial reforms have to resolve the moral hazard issue of any reckless financial institutions.

The ultimate punishment is to have all shareholders and creditors value wiped out and possible criminal prosecutions for its key personnel, in case it cannot repay the government's costs of bailing it out.

Only in that way, every institution will have no illusion that they would be bailed out freely, and the financial system will also have security and order.

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