The wiser course would be to penalize the CEO or board of directors who drove the company to the brink of failure. The most obvious punishment would be the elimination of any “golden parachutes” or bonuses for the executive and seizure of all company-derived assets, including any attempts to hide company assets in the spouse’s name. When C-level executives come to the realization that managing a company is not a game and that there are serious consequences for their actions, we will see fewer instances of requests for bailouts.
The system can recover from bankruptcies, as it has done throughout history. Would the world really have come to an end had AIG gone into bankruptcy or Goldman Sachs been forced to liquidate and close its doors?
For More: Ziad K Abdelnour