option 1
They split the bank in two parts.
One part has all the debts the other has all the assets.
All account holders have their money taken and are issued hybrid bonds/shares for their money.
option 2
This includes option 1 plus the government buys enough bonds from the bank to keep the bank going for another year.
Summary
The bank will be given enough money to continue for a while longer.
Either way it will be the people who pay, not the government.
BDR Price at posting:
34.5¢ Sentiment: None Disclosure: Held
