It seems to me that its bad enough that we give CEOs incentives to act recklessly knowing that they will make millions and have the American taxpayer to bail them out when things head south. But at least they are subject to our laws and regulations. Foreign banks though, may actually use this policy to do the same thing and their governments may use it to intentionally hurt us.
“But at least they are subject to our laws and regulations”
hahhahahah and when things turn sour, we can just pass new laws that render them guiltless and allow them to collect all their worthless paper profits in real government-printed money which they can take and deposit in some bank in the Caymans!
I bet the 8-year-CEO-of-Goldman-turned-Secretary-of-Treasury Paulson LOVES laws like that! At the end of his two-year dictatorship, he can go back to Goldman and collect his fee, which will be equivalent to the value of a small European country.