Discover and read the best of Twitter Threads about #WhatShouldTheyHaveDone

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1/n #YES bank, some thoughts and views.

This is a communication failure. You don't impose a moratorium on a major bank without a clear end game.

Markets hate uncertainty.

It will create panic. RBI's goal should be to not create unnecessary panic.
2/n #UnintendedConsequences

50k withdrawal restriction is presumably to prevent run on the bank and buy time.

Depositors don't like arbitrary restrictions. Every depositor will withdraw 50k.

It will create a mini-run. I hope they are prepared.
3/n #WhatShouldTheyHaveDone

Get everyone in a room, and come out only with a complete solution (bailout, buyout whatever).

Has been done before by Volcker and JPMorgan.

Cannot play this out in the public domain over days. Crucial trust is lost in the banking system.
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