Schäfer, Dorothea; Zimmermann, Klaus F. - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2009
work out units, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current … own cost and recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of … the bank by the government. The risk to taxpayers from this investment would be acceptable, however, once the banks are …