Banks are struggling to voluntarily raise equity from depositors to cover a very small part of their equity shortfall. If I was in such a situation, I would love to have the state raise the capital for me through legislation .

I would negotiate terms by which the state in all its branches (government, parliament and CB) acknowledge its responsibility in this systemic crisis, release me from any kind of liability, execute the bail-in through hybrid contingent instruments and allow a subsequent

capital increase with fresh money in the form of common shares with minimal dilution. I would be running a new bank with a clean balance sheet with no sword of Damocles (additional future write offs) Am I missing something here? Comments welcome

Three replies in this thread relate to the same “free” account