Quote:The Belgian government has approved the creation of a "bad bank" for risky assets held by the troubled Franco-Belgian bank Dexia.
Shares have fallen sharply in the past two days amid fears about its large exposure to Greek government debt.
Belgian Prime Minister Yves Leterme said his cabinet had agreed to isolate at-risk assets and to guarantee debts
http://www.bbc.co.uk/news/business-15176978
So it used to be that failed firms could shed debt and keep on going, but now they can also shed any assets that they no longer want, just spin them off into a "bad" firm that is planned to fail...no fuss no muss. This started with GM and Chrysler in Bankruptcy law but think that the original idea dates back the the tobacco companies spinning off their tobacco operations in order to shield the rest of the firm from raids from the government for restitution funds. We also see this idea in the recent Netflix spin 0ff of the DVD operations, as it works to kill that part of the business because there are much more profits in streaming.
The free market capitalist system is getting more heavily populated with zombies all the time...This does not end well.
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