The new thinking should put people first, and banks shareholders and bondholders second.

Government debt must be restructured. Bank debts have to be converted into equity and, where banks are insolvent, written off.

Before 2007, banks enjoyed high returns and soaring stock prices.

It is no coincidence that bank stocks were hit hardest in the recent financial crash.

Bank shares in particular are rebounding, and some banks have even succeeded in repaying at least part of their government provided capital.

Central banks should put a floor under the value of a country s banking system by committing to buy shares in an index fund of bank stocks at a predetermined price.

Having access to insured credit, banks shareholders find it irresistible to borrow excessively.

Why does any investment manager buy the stocks of banks that pay out very large portions of their earnings to their employees?

This would enable central banks to hold instruments that behave like a widely diversified global equity portfolio.

In fact, bank stock prices might drop, and it is entirely possible that compensation and bonuses would be curtailed, at least in the short term.

These debentures should be designed to create a strong incentive for bank managers and shareholders to issue equity rather than suffer conversion.

Bank bonds could also be reduced and converted into equity, which would both avert a government takeover of banks and prevent socialization of bank losses from causing a sovereign debt crisis.

Furthermore, many bank shareholders have suffered from the disruption in lending, either directly or via their businesses or employers.

Doubts about their stability are at the center of the storm. It is no coincidence that bank stocks were hit hardest in the recent financial crash.

Rather than imposing the costs of the ECB s and EFSF s losses on European taxpayers, the banks creditors could give up some of their claims in exchange for receiving shares from the banks owners.

There has been some recovery in prices for bank shares from the lows of 2008, of course, but that rally faltered recently.

Immediately after this declaration, however, prices of European bank stocks plunged, and Dijsselbloem was accused by many (including some of his colleagues) of having poured oil on a burning fire.

Banning payouts to shareholders and requiring banks to raise funds by selling new shares would bolster them without restricting their ability to lend.

If banks and financial institutions find it difficult to recapitalize (i.e., issue new equity), it is because investors are uncertain about the value of the assets in their portfolios and do not want to overpay. Will government do better at valuing those assets?

Higher and pro cyclical equity capital requirements on banks, combined with a requirement to raise contingent long term debt debt that converts into equity in a crisis is a better way forward.

When a bank s capital falls below a pre specified limit, its cocos automatically convert from debt to equity at a fraction of their previous price.

In 1992, Sweden s central bank, the Riksbank, allowed private bank equity holders to be wiped out, but it rescued depositors and creditors by buying up risky assets of failing institutions.

In 1992, Sweden s central bank, the Riksbank, allowed private bank equity holders to be wiped out, but it rescued depositors and creditors by buying up risky assets of failing institutions. Sweden recovered.

The Fed s commitment to buy shares of the mutual fund at a preset price would have caused investors to put new capital into the stronger banks to take advantage of the central bank s price support.

If it did not contribute much to the crisis, keeping risky trading away from commercial banks deposit base may still be desirable, but not something that the financial crisis proved is necessary.

So far, Geithner seems to have succeeded in his tests, as the stock market has indeed more than stabilized, with prices of bank shares such as Citigroup and Bank of America quadrupling from their lows.

Finally, solvency rules should be complemented by an obligation that banks issue a substantial amount of non collateralized debt on the order of 100 of their capital that is convertible into equity.

By issuing preferred shares with warrants (options), one reduces the public s downside risk and ensures that they participate in some of the upside potential.

So, if internal devaluation is to work, the value of debts, where they already represent a heavy burden, must be reduced. Government debt must be restructured.

He said Islam contributed a lot to western civilization.

Prices of bank shares and the Euribor OIS spread (a measure of financial stress) signal a profound lack of confidence in the sovereign debt of distressed countries, with yields on ten year Greek bonds recently hitting 25 .

A company might have a single shareholder or group of shareholders with majority control of the company, either through holding the majority of the company's outstanding equity or through holding shares with superior voting rights.

But the shareholders of Arcelor have made their choice.

In addition, regulators should require banks to issue an additional amount of capital say, 10 in the form of long term debt that is forced to convert into equity if the bank and the overall banking system get into financial difficulty.

The average holding duration for each shareholder is three years.

The response to the public offering was strong.

The theory of debt overhang the intellectual origin of the proposal explains why troubled banks are reluctant to issue new equity the benefits accrue mostly to the bank s bondholders and dilute existing shareholders.

The scale of these costs is unknown, but the share prices of the banks that could be affected (Barclays and Royal Bank of Scotland in particular) rose when the report was published, suggesting that they are not as high as had been feared.

Discussion paper contributed by the business and industry major group

Furthermore, many bank shareholders have suffered from the disruption in lending, either directly or via their businesses or employers. Some have even lost their jobs.

Will the financial sector return to pre crisis growth rates when the economic situation has been fully stabilized? Will financial deepening continue?

For example, in the European Union, many member States do allow shares with multiple or no voting rights.

Undercapitalization can be cured by an infusion of new equity.

The larger share of pay was in restricted stock and options.

Throughout these hostilities, UNIFIL was in close contact with the parties, urging them to exercise maximum restraint.