Gov't Closer To Nationalizing Banks

[Burp]

DrudgeReport says the NYT will report tomorrow that the Feds may convert bank bailouts to equity share.

The government will become the largest shareholder in several banks.

Nationalization...here we come.

 

[jillian]

*yawn*

we probably SHOULD have an ownership interest if we're paying for the shares (that way we MAKE MONEY on it) it's the opposite of what was said today...

and a combination of socialism and capitalism is probably what's necessary.

feel free to thank de-regulation and greed.

 

[Annie]

Jillian is right, it's the socialization of the banks. From the banks come the rest of government control. In all likelihood though there will be a world of hurt first, as the fake increase in the markets, along with increased confidence that there is the beginning of a 'recovery' crashes. Those stress tests were going to be ugly for a few of those banks, so the answer? Nationalize.

http://www.nytimes.com/2009/04/20/business/20bailout.html?ref=business

Cool that 'taxpayers take on more risk', when we never wanted to in the first place.

U.S. May Convert Banks’ Bailouts to Equity Share

By EDMUND L. ANDREWS
WASHINGTON — President Obama’s top economic advisers have determined that they can shore up the nation’s banking system without having to ask Congress for more money any time soon, according to administration officials.

In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.

Converting those loans to common shares would turn the federal aid into available capital for a bank — and give the government a large ownership stake in return.

While the option appears to be a quick and easy way to avoid a confrontation with Congressional leaders wary of putting more money into the banks, some critics would consider it a back door to nationalization, since the government could become the largest shareholder in several banks.

The Treasury has already negotiated this kind of conversion with Citigroup and has said it would consider doing the same with other banks, as needed. But now the administration seems convinced that this maneuver can be used to make up for any shortfall in capital that the big banks confront in the near term.

Each conversion of this type would force the administration to decide how to handle its considerable voting rights on a bank’s board.

Taxpayers would also be taking on more risk, because there is no way to know what the common shares might be worth when it comes time for the government to sell them....

 

[editec]

As I understand it now -- and please do bear with me, because my understanding of this complex mess is limited, and so it must keep evolving as I learn more about it -- is all that seems to be going on is that the BIG FISH BANKING INSIDERS are using the government to eat up the little fish (the smaller less well connected regional banks).

I do not see any HEROS here, folks. NONE. I see nobody to trust nobody to turn to and nobody with a plan that does demand more pain for the people while the insiders rape this nation's wealth

Not the Dems, not Obama, not the people behind the Tea party, certainly not the Republican or Dems in Congress, either.

Everybody in a position to know KNEW the debt problems were an ongoing swindle, and nobody in the Bush Admin's SEC or Congress did shit about it.

And now it appears to me that the Obama Administration is finalizing the swindle behind the veil of bailing out the insolvent banks, while trying to bribe the American people by giving us peanuts to assuage SOME of the social disruption pain this SWINDLE is bound to cause.

I think the insiders are bankrupting the American people, the nation, many of the wealthy in this nation that are not connected to the insiders of either party, too.

EVERYBODY KNEW the bonds rating agencies were lying, folks.

EVERYBODY KNEW IT in a position to KNOW what was going on pretended they didn't see a problem with these LIES about the bonds ratings

Nobody in EITHER PARTY did jackshit to stop it.

Insiders in BOTH parties took their campaign contributions, (and probably some cozy insiders' financial deals , too) and looked the other way.

I can't tell ANY of you what team to join because I don't see a TEAM that isn't involved in the swindle that ANY of us can TRUST.

You tea party folks, while I certainly think your motives are sound and honest and patriotic, are being manipulated and mislead by what you think is YOUR team leaders ...the RNC.

You folks who think the Ds are fixing thing are being mislead, as well. Look at who Obama put in charge of the bailout and TARP and KNOW that they ALL benefitted from this SWINDLE

I am just so disgusted with the masters of the banking and finance industry and the POLS who sold their souls and by doing so sold out our nation.

American -- in GOD we trust
(because we know goddamned well there's nobody else TO trust!)​