Stopping the rot

In the recent history of financial crises - from the collapse of savings and loans institutions in the US in the late 1980s to the Asian financial crisis of 1997/98 - initiatives to separate good assets from bad have been at the heart of resolution efforts. In this, the latest turbulent episode of the financial sector, several major banks across the globe have teetered on the brink of collapse as losses, initially confined to structured credit exposures, have spread to conventional loan portfoli