The purchase of preferred stock for the taxpayers is a far better option, and will immediately put capital in the banks to loan...it will also give the taxpayers a ‘FREE MARKET’ USE of TAXPAYER DOLLARS...not a socialist answer..I like this use of money. Invest in America and make a return by selling the preferred stock at a later date and be done with it. The stock purchase is immediate capital for bank and with stock as collateral for moeny it is sure return on money. I like it.
I disagree.
If the bank cannot get investment from other places, there might be a reason for that. ‘Bad’ investment.
Yep! and it doesn’t “screw the shareholders”...it saves them from certain bankruptcy..Fed’s trying to save some of them.....
I disagree. This plan amounts to bailing out shareholders who would otherwise get wiped out in a bankruptcy. That's very socialistic in my book.
What we need is not a bailout, but an emergency, accelerated industry-wide Chapter 13 for all undercapitalized banks.