Head of Sweden's national debt office lectures US policymakers on successful banking bail-out
Sweden
The 'bad bank' that came good
* David Gow, European business editor
* The Guardian,
* Wednesday October 1 2008
Bo Lundgren, head of Sweden's national debt office, the Riksgälden, has been touring the US telling policymakers how to mount a successful banking bail-out without hurting taxpayers.
He should know. In the early 1990s he was finance minister when the Swedish economy went into a tailspin, contracting 4% as a lending and property bubble prompted by deregulation burst.
Five of the seven biggest banks, covering 90% of the market, were effectively insolvent, requiring huge injections of capital from government or shareholders to keep afloat.
--MORE--
The 'bad bank' that came good
* David Gow, European business editor
* The Guardian,
* Wednesday October 1 2008
Bo Lundgren, head of Sweden's national debt office, the Riksgälden, has been touring the US telling policymakers how to mount a successful banking bail-out without hurting taxpayers.
He should know. In the early 1990s he was finance minister when the Swedish economy went into a tailspin, contracting 4% as a lending and property bubble prompted by deregulation burst.
Five of the seven biggest banks, covering 90% of the market, were effectively insolvent, requiring huge injections of capital from government or shareholders to keep afloat.
--MORE--