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The Banking Crisis in the United States
If you weren't sure which banks were solvent or not then the rational thing to do was not to lend to any of them and just to lend to the government for six months until things had calmed down. So these liquidity problems weren't going away without some further action and we had to recapitalize the banks. The banking crisis ended in May 2009 when the US Treasury announced the results of their stress test and the resulting recapitalization of all the major US banks. That I think was the turning point of the banking crisis, says Lord Tebbit.