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Business, 24.06.2019 14:30 aleilyg2005

At the height of the global financial crisis in october 2008, the u. s. treasury forced nine of the largest u. s. banks to accept capital injections, in exchange for nonvoting ownership stock, even though some of the banks did not need the capital and did not want to participate. what could be the rationale for doing this? a. by forcing all banks to accept capital injections, it would prevent bank runs on the weakest banks. b. these actions were mandated by the basel accord to end the financial crisis. c. with capital injections, institutions would have less "skin in the game" and would thus pursue less-risky investments. d. government control of banks and other financial institutions would guarantee an end to the financial crisis.

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