Fed Backs Hypocrisy of Bank Recapitalization

'in "Fed plan is spoilt by its backing of hypocrites," returns to a notion he has brought up in some recent Financial Times articles, namely, that the amount of funds that banks need to rebuild their balance sheets is so large that it cannot be obtained without some form of government sponsorship. Note that that does not necessarily imply explicit payments or subsidies; it could take the form of calling in favors (assuming we have any left), guarantees, or other forms of intervention.'