NYT: U.S. May Take Ownership Stake in Banks

New York Times ^ | October 9, 2008 | By EDMUND L. ANDREWS and MARK LANDLER

[RaceBannon]

U.S. May Take Ownership Stake in Banks Treasury Dept. Would Hope to Spur Lending By EDMUND L. ANDREWS and MARK LANDLER Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash into banks that request it.

Q & A: The Fed’s Rate Cut Times Topics: Credit Crisis — The Essentials

[RaceBannon]

U.S. May Take Ownership Stake in Banks Treasury Dept. Would Hope to Spur Lending By EDMUND L. ANDREWS and MARK LANDLER Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash into banks that request it.

Q & A: The Fed’s Rate Cut Times Topics: Credit Crisis — The Essentials

[RaceBannon]

Socialism...it is here.

[snowsislander]

Any purchases of stock would most likely be of non-voting preferred stock, and not of voting common stock.

[Boiling Pots]

Or, is this “Compassionate conservatism.”

[LikeLight]

Socialism...it is here

We're in it thick now. And it's already getting ugly. AIG getting thrashed for rewarding its top performing sales people. In Socialism, only the political class gets the perks. Who do these hard working salespeople think they are, to expect rewards for their own hard work and success? No, from now on the Party will decide who gets rewarded. It's a dark day for America.

[finnsheep]

It won’t help at all. If banks keep writing derivatives, there is no end in sight to the mess.

[silverleaf]

the deeper the govt gets, the deeper the hole they dig

obviously the Paulson/Pelosi/Frank “bailout” plan is so deeply flawed that banks eschew using it

So their answer is to takeover the banks?

we are in deep deep doo-doo

[Wolfie]

Derivatives? Please. It’s all about mortgages to low-income people.

[dirtboy]

Derivatives? Please. It’s all about mortgages to low-income people.

Sorry, but it's both.

[silverleaf]

Im sure a significant portion of the nonperforming mortgages are to middle income folks who unwisely chose teaser ARMS and now cannot refinance and are getting no cooperation from the lenders

[quack]

AIG turned out to have spent what,$4000 on each person?Hardly what I would call wasteful spending for rewarding sales people.

[Wolfie]

I was being sarcastic.

If financial insitutions had not been allowed to run amok with derivatives and credit swaps, we wouldn’t be where we’re at today. Of course, suggesting such is heresy.

[Raycpa]

Socialism...it is here.

Not if they are bankrupt, the US is a creditor.

[Raycpa]

I have an idea. Lets have the SS monies purchase bargain banks. We can kill two birds with one stone. If it works we solve the funding SS problem. If it fails we get rid of SS.

[tcostell]

If banks keep writing derivatives, there is no end in sight to the mess.

Nonsense.

[tcostell]

If financial insitutions had not been allowed to run amok with derivatives and credit swaps, we wouldn’t be where we’re at today.

If we were all still riding horses just think of all the car accidents that would have been avoided.

[oblomov]

The root of the problem is the desire of the majority of the polity to live beyond its means. So the government runs deficits, and the consumer has debt. Then a so-called unexpected crisis occurs, the debts can’t be repaid, and our rulers and commentators scurry to restore a “confidence” that should never have existed.

[LearsFool]

U.S. May Take Ownership Stake in Banks

Break it. Fix it. Retain the newly-acquired powers.

Nope, never seen that before! /s

[prairiebreeze]

Report: U.S. Considering Taking Ownership Stake in Banks

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[Notary Sojac]

Never thought I'd say this, but I would rather see the Fed loan to the businesses who can't get credit, directly.

If the middlemen don't want to play any more, they can stay off the field.