Academics Laud Bank Plan

The Treasury gets gold stars for finally recapitalizing collapsing banks, with the Wall Street Journal reporting on reactions from economics professors:

• Barry Eichengreen, UC Berkeley: "I would give it an A- for quality but lower the final grade to a C for lateness."
• Kenneth Rogoff, Harvard: "Thank goodness they didn’t dally for another week."

• Anil Kashyap, University of Chicago: "I would prefer giving the option to raise it privately first."
• Brad DeLong, UC Berkeley: "Yes, it is the right move—but nonvoting preferred stock scares me as giving too great incentives to gamble for resurrection."
• John Cochrane, University of Chicago: "There are all sorts of warts on it, but at least this one will probably work."

(More financial crisis stories.)