[quote=davelj] But there’s no reason to push an institution over the edge when the bank can repair itself with a few years’ time. Recall that the “price” of that repair will be borne by its shareholders, not taxpayers.[/quote]

There is no issue of pushing an institution over the edge. The institutions went over on their own initiative. The question is whether to try to pull them back.

The reason not to try to pull them back is to prevent incompetent bankers from continuing to be bankers. All the while the imprudent bankers were getting into trouble, they were making it harder for prudent bankers to gain business.

One effect of all this rescue activity is to make prudent and responsible people, who did not get into trouble, consider the option of being less prudent and responsible.