The UK Bails Out Banks the Right Way

The British government announced this morning that it is bailing out its banks by directly injecting capital through the purchase of preferred shares. This is what many economists advocated be done in the U.S.
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The British government announced this morning that it is bailing out its banks by directly injecting capital through the purchase of preferred shares. It announced that the banks will suspend dividends and that top executives will get pay cuts.

This is what many economists advocated be done in the United States, but apparently the Bush administration never considered this route. We'll see which bailout works better.

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