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Those banks deemed insolvent would have to be dealt with in one go, to avoid the seizure of one bank starting a run on the liabilities of others that are seen as weak, points out Nouriel Roubini of New York University's Stern School.That is not the only risk.
This would mean still providing a basic pension, but the retiree would also receive benefits from a "personal account" whose funds would be managed by social-security officials.The problem is that the new pension system has taken on the liabilities of the old one.
But on the liabilities side, it is also one of the principal reasons Japanese companies have floundered for years, since few bosses have the stature, credibility and authority to force through tough medicine on a flailing organisation.
On the liabilities side, banks hold $1.2 trillion in reserves at the Fed.
The counterpart on the liabilities side of the central bank's balance sheet is a decline in equity.
"The taxpayer cannot afford to take on the liabilities of an ailing industry that looks set to get sicker".
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But that number is contingent on the liability issue.
The regulations concentrated on the liability for the cost of lost or damaged cargo.
If the asset goes down, so will the amount owed on the liability.
On the liability side, this ballooning balance sheet was financed using risky leverage, often at short maturities.
"Previous court decisions support the company's position on the liability calculation," said David Castelveter, a spokesman for the airline.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com