Recently, there is news of restructuring of Jiangxi's LDK Group and Tianjin's Bohai Steel Group in attempt to avoid the debt, which has caused the strong involvement of local government, and the banks probably have suffered huge losses. Anbound research team believes that the corporates and the local government have been treating banks as panacea. The current priority should be adopting the policy of handling the bankruptcy through market-oriented bankruptcy reorganization, which includes implementing and improving bankruptcy law, as well as standardizing and the reforming the judicial system (to avoid local government excessively intervening the bankruptcy proceedings. There are a lot of basic works and much-needed breakthrough to be done.