Bank Bailouts

According to reports, Zhao Changpeng, CEO of Coin Security, tweeted that once the regulators implemented a rescue to the bank, it would fall into a dilemma. If there is no relief, it does not conform to the claim of “protecting consumers”. If the bank bails out, it will lose the power to manage risks, thus encouraging banks to take more and more risks, which will lead to more bailouts. He said that this was a thorny issue, and suggested that regulators should only help consumers and compensate them. Then shut down the bankrupt enterprises and recover part of the executive compensation. Zhao Changpeng: The rescue will make the banks lose the power to manage risks. It is suggested that the regulators should only compensate the depositors Analysis based on this information:The message relayed through the tweet of Zhao Changpeng, CEO of Coin Security, highlights a crucial issue that is faced by financial regulators worldwide: the dilemma of bank bailouts. In…