a. it would take state ownership of the bad debt on the books.
b. the state could dictate lending practices, rather than suggest them.
c. really, should banks be run as for-profit institutions?
note that this has potential downsides as well as upsides, just like everything else planned to assist the economy. however, i fall on the side of getting as much toxic debt out of the private sector as possible as quickly as possible, and opening up lending markets with REGULATION and less usurious practices. c) is a matter of personal opinion, but i think it's borderline criminal that banking doesn't have far more severe oversight, if not outright accountability to the state and the people. fuck shareholders. we shouldn't be building fake wealth on the bubble of obscene interest rates.