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To: cowtowney

I’m pretty confident that common equity will be zeroed out in the rescue.


105 posted on 07/13/2008 8:31:38 PM PDT by Petronski (Scripture & Tradition must be accepted & honored w/equal sentiments of devotion & reverence. CCC 82)
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To: Petronski
I’m pretty confident that common equity will be zeroed out in the rescue.

Yep. The share prices will go asymptotically to zero, but the debts will be underwritten by the taxpayer. Not because there is a legal requirement to do so, but because the world's financial system would collapse if the FM Ogres colossal debts were not honoured.

150 posted on 07/14/2008 9:23:46 AM PDT by agere_contra
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