The bottom line is that the contingency fee system already solves the one problem litigation financing addresses, and does so in a manner that avoids the worst excesses.
Otherwise, Congress should allow corporations to deduct dividends in the same manner they can deduct interest expenses to level the tax and financing playing field.
Briefly, these programs are intended to mitigate what have been, at times, very severe strains in short-term funding markets and, by providing an additional source of financing, to allow banks and other financial institutions to deleverage in a more orderly manner.