Back door to nationalization? Government could become largest shareholder in several banks... Developing... Breaking news from Drudge Report! http://www.ft.com/cms/s/0/f3bc75b2-2d1a-11de-8710-00144feabdc0.html This is pure theft of public funds.
How is this breaking news?? The government has been the largest lender, bond holder, and preferred share holder in existence. Plus doesn't the government already own 80% in Fannie, Freddie, & AIG. Don't they own 30% of C?? So who cares if BAC and WFC is added. The damage was done bailing out BSC.
this is how they will raise tangible equity to "help" banks. But kill shareholders. C was the first. Sure not to be the last.
FDIC does it all the time. I have no idea what the big deal is here. Shoulda been done ages ago, would have saved tons of money. There would, indeed, have been no need for the TARP, if all they did was follow already established procedure. If the FDIC needed more money to get the job done, give 'em more. No way would it have been as expensive as the TARP and all the rest of these misbegotten programs.