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"It prevented the insolvency from being transferred from the banking system to the government," he said.
Grossnose was a Hollywood producer who had mastered the knack of creating insolvency from the most promising projects.
Banking union would also sever the venomous connections that transmit insolvency from banks to governments and vice versa.
The task force noted that Gov. Pat Quinn had inherited the insolvency from the previous governor, Rod R. Blagojevich, who is serving a prison sentence for corruption.
Parmalat's government-appointed administrator sued Bank of America in the United States this month, contending that the bank helped Parmalat executives hide debt and conceal its insolvency from investors.
Moreover, new data on bankruptcies released today suggests that one of the biggest challenges the government will face this year is how to prevent insolvency from tipping the banking system into another crisis.
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The Justice Ministry said reforms of no-win, no-fee legal funding arrangements will apply to insolvency litigation from next April.
It might not be used in a crisis period in which there is widespread insolvency, either from a common shock to banks or common bad behaviour by banks.
It could be that all the banks were forced encouraged to take government funds, not just to re-spark the credit market, but to remove the insolvency stigma from receiving TARP funds.What made the financial crisis so severe was the amount of uncertainty.
The court had to choose the insolvency administrator from a list and, thus, had considerable leeway.
Still, the prospect that the government is preparing to wade in deep — perhaps sparing families from foreclosure and banks from insolvency — has muted talk of the most dire possibilities: a severe shortage of credit that would crimp the availability of finance for many years, effectively halting economic growth.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com