Should we fire CEOs and liquidate their banks?

Peter Cohan

A Congressional panel headed by Harvard Law School professor Elizabeth Warren is suggesting it's time to fire bank CEOs and liquidate the banks they ran. As Jon Stewart would say, "Me like-y."

The panel is not suggesting that the firing and liquidation happen en masse. Rather, it simply argues that the Treasury's approach denies the reality of just how bad the banks' financial condition is and leaves those sick banks in control of the very people who got them into the toxic-waste business. The Panel suggests that CEOs of sick banks have a too-rosy view of their institutions' prospects.