White House considers ownership stakes in banks

[dkf]

Thursday October 9, 6:09 am ET
By Martin Crutsinger, AP Economics Writer
White House considers taking ownership stakes in private banks to deal with credit crisis

WASHINGTON (AP) -- The Bush administration is considering taking ownership stakes in certain U.S. banks as an option for dealing with a severe global credit crisis.

An administration official, who spoke on condition of anonymity because no decision has been made, said the $700 billion rescue package passed by Congress last week allows the Treasury Department to inject fresh capital into financial institutions and get ownership shares in return.

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This official said all the new powers granted in the legislation were being considered as the administration seeks to deal with a serious credit crisis that has caused the biggest upheavals on Wall Street in seven decades and continues to roil global markets.

Supporters of this approach, such as Sen. Charles Schumer, D-N.Y., argue that injecting fresh capital into U.S. banks who want to participate in the program would be an effective way to bolster banks' balance sheets and get them to resume lending. Taxpayers would benefit because the government would receive an equity stake in the bank in return for providing the capital.

http://biz.yahoo.com/ap/081009/meltdown_paulson.html

[Davis_X_Machina]

1. We see the wisdom...

...of comrade Lenin insisting that the commanding heights of the economy be placed, and remain, in the hands of the State.

All power to the soviets of workers and peasants!

[NightWatcher]

2. does that make us more like China or Soviet Union?

I wonder if there will be an outcry from "good ole boys" when they learn that we're becoming a socialist or communist state.

[Davis_X_Machina]

3. Soviet Union.

....We've got decent hockey players.

[dkf]

4. Nah...we only nationalize losers.

[Turbineguy]

5. Yeah, that's it.

The Bush Administration needs to run a fucking bank!

[dkf]

6. Not for long.

They are almost outta here.