Professor Edward Kane:

I lost the Deputy's first question, which I was ready to answer. However, the idea of public ownership creates its own problems. Temporary public ownership is very important in straightening out incentives, as is exercising the call on the assets that is part of the guarantee. People will find ways to corrupt public institutions. There will be different channels from the ones we have just described. However, we will still see taxpayers exploited through this. This has been the history of government ownership of banks all along. One gets what is called crony capitalism. The governments lend to well-connected parties. In some Asian countries, there will be a family who will get huge amounts of the loans from the public institutions.