Uhhh, no. I just recommend that the government follow the rule of law. When a bank becomes insolvent, it should be liquidated (per the rule of law) and not illegally propped up. It’s actually a very capitalist notion.
[/quote]
There is no specific “rule of law” where placing a bank into receivership is concerned. (Although the process is governed by specific laws AFTER a bank has been placed into receivership.) It’s all based on rules and judgment as interpreted and exercised by the various regulatory bodies. Not much black and white – mostly gray area. Which is why the process seems kind of haphazard, particularly right now. As with other bank-related issues, you’re making this “rule of law” issue up. Prior to being placed into receivership, it basically doesn’t exist – it’s just a lot of guidelines and judgment calls. For better or worse.
