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- not gambling, mortgages

- not in the end a loss (banks taken into government ownership eventually sold for about the acquisition price

- bank shareholders lost their money

- you don't want to see everything turned into Northern Rock bank runs



The banks should have been nationalised.Iceland was able to solve they Monte Carlo GFC event without creating a moral hazard.


They DID nationalise the banks! https://researchbriefings.files.parliament.uk/documents/SN05...

They ended up with 100% of Northern Rock and Bradford and Bingley; 84% of RBS, and 43% of Lloyds.


Thanks for that info. Live and learn.


Thankyou for this comment. The GFC is a complicated subject; there WAS a lot of reprehensible behavior, but it's often not correctly identified because people like simple problems with clear villains.

The history of Anglo-Irish Bank is an even more interesting story; Sean Quinn is one of the few bankers who was actually jailed, even if only for a short time.




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