In 1994, Mexican private banks were going to go bankrupt and the goverment save them. A similar scenario would be the worst outcome of the bubble bursting. The only English source of information I have about the matter is from Wikipedia. Below are some excerpts and the link.
“FOBAPROA (Fondo Bancario de Protección al Ahorro or “Banking Fund for the Protection of Savings”) is a controversial fund created in Mexico in 1990 to attempt to resolve liquidity problems of the banking system in that country. The Fobaproa was applied in 1994 during the economic crisis to protect all Mexican banks from going bankrupt, and thus destroying the Mexican Economy.”
“The Fobaproa assumed debt for 552 billion dollars (equivalent to 40% of GDP of Mexico in 1997 or 2/3 of the budget for 1998). Not applying the Fobaproa would have likely caused an interruption of credit and withdrawal from saving accounts for millions of families and thousands of companies.”
Nobody is accountable or went to jail for the fall out of the banks, only the tax payers remain with the debt payments that continue to take out a very large portion of the goverment tax revenue.
