Banking : Solvency vs. Liquidity

Bailing out illiquid but solvent banks is the right thing to do (if you can trust the government to identify illiquidity without insolvency). Bailing out insolvent banks tends to reward behaviour that makes you and insolvent. And it is costly. If you think that the Norway experience can be duplicated in any bank bail out – then unfortunately you are sadly mistaken. I doubt the average government can identify the difference between illiquidity and insolvency.

(c) Bronte Capital

Там же ссылка на Norvegian Banking Crisis