PROBLEM & SOLUTION

In 2018, in perhaps that year’s waning days between Christmas and New Year, the Eurozone will splinter and send out a eurobank-derived contagion that’ll systemically infect Wall Street, and melt it down in almost the blink of an eye. To preempt and then prevent that meltdown, the following subset of actions must be executed upon, ASAP:

Component 1— The ‘Bail-in’

In light of Alan Greenspan telling the Financial Crisis Inquiry Commission that “with 15% tangible equity capital, neither Bear Stearns nor Lehman Brothers would have been in trouble,” how about getting to at least that number, and preferably more, before it’s too late by doing what’s needed to:

Equity, additional Tier-1 securities (contingent convertible bonds or hybrids), subordinated debt, and senior debt available for bail-in.

Component 2 — The ‘Re-Structuring’

Per the proposal set forth by Richard W Fisher, former head of the Dallas Fed, in remarks before the “Committee for the Republic” on January 16 2013 — with the major recommended modification by Main Street Gov to that proposal being that the breakpoint for every megabank’s ‘re-structure’ be $50 billion in balance sheet LIABILITIES, instead of $250 billion in balance sheet ASSETS as Mr. Fisher has proposed — we ask that the following be implemented:

Ending Too Big to Fail, A Proposal for Reform Before It’s Too Late.

Source: The Crisis to Come