Professor Kane has written a stimulating paper. The paper provides a clear and comprehensive framework and addresses in an elegant way several important problems that bear directly on the resolution of troubled financial institutions: how and when to intervene in such institutions has been a major issue for the financial system and its clients and also for policymakers. Moreover, the debate has international dimensions. In several recent crises (for instance, those in East Asia in 1997), not only national authorities but also international financial institutions had to spend a lot of time dealing with bank resolution problems. These issues also are key to many of the ongoing discussions on the reform of the international financial architecture. Moreover, the wave of bank consolidations that are taking place across the world is raising legitimate concerns about leading to “too-big-to-fail” banks, a topic dealt with in the paper.