Everyone likes the idea of a Swedish model, even in banking
Gordon Brown has been claiming the credit for the idea of Governments taking equity stakes in banks as a way out of their insolvency. He said in the Times on Friday that
"We must lead the world to financial stability"
and challenged other world leaders to follow his supposedly bold and innovative example. As other commentators have pointed out (like Nick Robinson), the model for this proposed solution actually comes from Sweden in the early 1990s.
Carl Bildt, who is now Swedish Foreign Minister (pictured here with me at last year's Swedish Moderaterna Party Conference in Gävle), was then the Prime Minister who devised a far-reaching solution. I worked on a trading floor in London in the early 1990s, and remember the Swedish banking bail-out quite well, although it was overshadowed ironically by the collapse of the ERM at about the same time in late 1992.
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