Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Don't allocate it to the shareholders at all. Allocate it to the executives. Arnold Kling got there first with a proposal that institutions that are obviously "too big to fail" and as such have a government guarantee should be bound by a spirit-of-the-law (S)contract, rather than the letter.

"I would like to see managers of government-protected institutions take an oath to safeguard the soundness of their companies. I would like to see them subjected to prison terms for violating that oath. The oath is a general promise, not satisfied simply by staying within the boundaries of L regulation.

I believe that S regulation would change the motives of bank managers. They would be looking for ways to avoid failure, rather than for ways to stay within the letter of the law."

http://econlog.econlib.org/archives/2008/11/letter_of_law_s....



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: