Whether to save failing banks by government?

"It's our view that regulators are expecting 100 to 200 banks to fail over the next 12 to 24 months.” says Jaret Seiberg, a research analyst for the Stanford Group. Since the advent of recession, a plenty of banks have suffered from failures. Even the prestige banks such as City-Bank cannot escape from the plight. This brutal fact not only triggers people’s intense worry about the current economy, but also deteriorates the recession situation. Furthermore, various fields will be affected by the failing banks to a certain extent, which even may cause social unrest. To revive the economy, it is imperative for the government to take measures to save the failing banks.(Bowen)
Banks must be saved. As we know, people all deposit their money in banks, if the bank which holds their money bankrupts, part of their money is gone. Can you imagine you are told that your money in bank is gone while the economic crisis is getting worse and worse? Moreover, banks are not only the place where people deposit money, but also the resource of money for almost entire industries. Banks give loans to people to consume, which prompts economic development; banks invest companies to help them extend their business, which helps all industries carry on. What if banks are gone? The consumption will decrease at a considerable pace while all industry will face horrible problems since they can’t get enough money to carry on their business, which will not only destroy the financial market but also destroy the real economy. What’s more, when banks go bankrupt, confidence will be gone for an enormously long period of time. One thing you should know is that confidence is the most effective medicine during economic crisis.(Haiyuan)
I will take the City Bank as an example for our further illustration that failing banks must be saved by the government. As we know the City Bank is the second largest commercial bank of the whole America. It owns such a quite enormous amount of money and credits that the government of America cannot wait to save it. It is related to many ceilings’ accounts and many investors’ interest all over the world. Also, quite a large number of companies and enterprises need money flow through City Bank which is very reliable for them. Once City Bank failed, the whole financial system of the world would be severely affected and the whole market would be collapsed. That would be a terrible situation which cannot restore any more. And the government must protect the interest of the citizens and the whole financial system. It is their duty to save City Bank not only because of its great reputation, but also because it has an effect on the others fields and the whole world. Furthermore, the government has truly tried to save it. Government injected 20 billion dollars to rescue City Bank which has more than 350,000 clerks and over 200 million ceilings all over the world. We can see the good effect of the event. America alleviated the depressed situation of the market and citizens began to have their normal life. Saving some great failing banks must be done by the government if necessary.(Mi Yang)
Critics of my position may think that we should believe in the law of the jungle, i.e. we should let the market decide whether the bank survive or not. They may say that if the government interfere, although the banks can be saved temporarily, it will not change the whole economic situation. However, they are wrong. Firstly, market is not the only factor to decide whether a bank survives. As the development of banks will affect the economic trend of a country, the government who should assume the responsibility to control macro-economic of the whole country should save banks. Secondly, saving banks can help reviving the economy. For example, in 2008, during the recession, U.S government spent 20,000,000,000 dollars saving City Bank, which is the second largest commercial bank in U.S.A. After that, the economy of U.S.A began to revive. If the government let City Bank run its course, the whole economy of America will be pounded. Therefore, U.S government made great efforts to save City Bank and thus helped the economy to revive.（Xixian）

In conclusion, it is high time for the government to take actions to save the failing banks. Since the failing banks would trigger off so many serious consequences, it calls for urgent efforts to help those failing banks survive. However, it is almost unpractical to expect the failing banks to bounce back by themselves especially in the current severe situation. The failing banks cannot survive depending on their own capability. To survive in the recession, they need both the policy support and the finance support from the government. Only by the concerted efforts of government and those banks themselves can we expect the coming spring of the failing banks and the coming spring of the global economy.(Bowen)