A highly telling and profound statement from Bernanke yesterday. While the notion of ‘public losses’ is not entirely clear, the second part that they will impose losses on shareholders, read Banks, is very clear. I read that a if a Bank is not viable it is not going to be saved, notwithstanding the crisis, and Bear Stearns albeit and investment Bank, is the best example so far. Which Bank will be the first?

FT.com / World / US & Canada – Fed ready to extend bank aid

“A bridge bank authority is an important mechanism for minimising public losses from government intervention while imposing losses on shareholders and unsecured creditors, thereby ­limiting moral hazard and mitigating any adverse impact of ­government intervention on market discipline,” Mr Bernanke said.