From Simon Johnson, quoted by Economist’s View:
How then do we really privatize? By exercising leadership: take over insolvent banks and immediately reprivatize them. … The taxpayer retains a significant number of shares (or the option to buy common stock) as a way to ensure upside participation…
Above all, we need to encourage or, most likely, force the large insolvent banks to break up. Their political power needs to be broken, and the only way to do that is to pull apart their economic empires. It doesn’t have to be done immediately, but it needs to be a clearly stated goal and metric for the entire reprivatization process.
