Sudip Bandyopadhyay’s Blog

The US authorities are trying to pivot from and hoc fire-fighting to a more strategic approach to tackling the credit crisis but the Wachovia deal shows how difficult this is going to be.  Even assuming the $ 700 bn Paulson plan to buy toxic assets from the banks becomes law , the Treasury and the [...]

Last week’s dramatic events hold two transatlantic lessons in opposite directions, one from Europe to the US and one the other way.  The first comes from Sweden, which suffered its own financial crisis during the early 1990s.  The Swedish lesson is that bank bail-outs should be handled conservatively and should come in the form of [...]