Derek Carroll
Jason GormanNew rule: if your for-profit company is "too big to fail", you get nationalised, not bailed out.
And I don't mean "temporarily"
jtonline@jasongorman just call it gone to seed funding, for an appropriate stake in the business of course.
Anders Norén@jasongorman This is what the Swedish government did during the 1990s banking crisis. The failing banks were propped up with taxpayer money in exchange for shares so that the government ended up being majority shareholder in several banks. The banks were eventually restructured and the debts were payed off and then the goverment sold most of its shares, often at a small profit.
Brian Smith@violanders @jasongorman
That was supposed to happen in the UK, but the Tories managed to make a Loss on it.
That was supposed to happen in the UK, but the Tories managed to make a Loss on it.
Solarpunk Davy@violanders @jasongorman roughly same in Netherlands.
abs(in)the@jasongorman I move for a reformed version of bankruptcy protection which specifically excludes company related obligations to its executives
Muss das sein.@jasongorman I think Iceland did it this with a few banks after the 2008 crisis. They recovered fastest. ;)
I’d love this. You’ll get bought by the people and now the people own your company.
meek cynicsthe difference is just in spelling, @jasongorman, those corporations already run the government; if they weren't, they would have been broken up before they got too big to fail
Nafeon the Bear@jasongorman yeah, if your HHI (Herfindahl–Hirschman index) is above 0.6 you get "merged" into public domain, because you won real life monopoly ~
@jasongorman although it depends a bit on why it's too big too fail.
Like it it provides a valuable service for society: yes. But if it's: our economy is now 25% in this company (such as AI shit) I don't think we should nationalize them, but put them in jail.
Jeff GriggAfter a "too big to fail" company is nationalized, then it's *essential services* should be split up. And everything else put on "controlled shut down."
arclight@jasongorman Absolutely fair.
Rémy@jasongorman every bailout should be a nationalisation, period.
Simon EI3JDB@jasongorman More importantly, at nationalisation the previous shareholders should receive their share of the company's worth - assets minus debts - so normally $0
Shareholders must have an incentive to make sure the company is well run.
@EI3JDB Yep. Nationalisation should be an intervention when bankruptcy is inevitable but the consequences of folding would be very serious for that country.
SarcastiCat@jasongorman "Too big to fail" = "Too vital to leave up to the vagaries of the profit-at-any-cost sector".
David Chisnall (*Now with 50% more sarcasm!*)If such a company is going to fail, the nationalisation process should be:
- All senior leadership are fired, immediately.
- All board members are banned from holding board memberships for the next 10 years (maybe longer).
- Share price is set to zero.
- All debts default. If you loaned money without doing due diligence then you lose it. If this causes a bank to become insolvent, proceed from step 1 with respect to that bank.
- Any money executives made from dividends or stock sales in the preceding 5 years is considered to be potentially the proceeds of fraud and investigated as such.
Can we start with Thames Water please?
Robert Pluim 🇪🇺@david_chisnall @jasongorman Plus the execs get put in prison, no bail, pending trial. After all, by definition they will have enough money to be a flight risk. Any government members involved are banned from holding public office forever.
Taran Rampersad@jasongorman nah. I don't want to continue paying for their mistakes.
Drawn, quartered, and sold.
And after the ceo, the company too.
🙃
Anton Sherwood@jasongorman Or at least the bailout is conditional on breaking into pieces small enough to fail.