WSJ article provides more specific detail on the structuring of the bailout: Mr. Paulson has quietly hired Morgan Stanley, the investment bank, to look into "appropriate capital structures" if he does decide to sign the blank check that Congress has given him. Robert Scully, the Morgan banker who will lead the effort, is by all accounts a straight shooter. http://online.wsj.com/article/SB121910271338151257.html?mod=googlenews_wsj
The top execs at FRE and FNM should be indicted. But that won't happen. This is America. There are no consequences.