A Watershed Day: U.S. Takes Stake in Banks

[Mme. Defarge]

Source: Tech Ticker

Posted Oct 14, 2008 01:50pm EDT by Aaron Task in Investing, Recession, Banking
Related: c, ^dji, ^gspc, jpm, gs, bac, wfc

Hoping to restore confidence and avoid a collapse of the U.S. financial system, Treasury Secretary Henry M. Paulson Jr. announced a government bailout plan, describing it as "extensive, powerful and transformative."

Paulson also said, "We regret having to take these actions. Today's actions are not what we ever wanted to do -- but today's actions are what we must do to restore confidence to our financial system."
Plan highlights include:

Injection of $250 billion into the nation's banks
The U.S. will guarantee new debt issued by banks for three years, designed to prompt banks to resume lending to one another and to customers
The F.D.I.C. will offer unlimited guarantee on bank deposits in accounts that don't bear interest — usually those of small businesses
The Treasury will take preferred equity stakes in the nation's largest banks including:

Goldman Sachs (GS)
Morgan Stanley (MS)
J.P. Morgan (JPM)
Bank of America (BAC)
Citigroup (C)
Wells Fargo & Co. (WFC)
Bank of New York Mellon (BNY)
State Street (STT)


Read more: http://finance.yahoo.com/tech-ticker/article/95902/A-Watershed-Day-U.S.-Takes-Stake-in-Banks?tickers=c,%5Edji,%5Egspc,jpm,gs,bac,wfc

[GeorgeGist]

1. It will be news when ...

the banks agree.

[SpiralHawk]

2. Republicons bring corporate socialism to America

Ptoooey!

Republicons claimed they were conservative. But they proved to be radical borrow-and-spend greedheads.

Republicons claimed they were against nation building. But they have been sending $10 billion a month of our money in a FAILED effort to nation build in Iraq.

Republicons claimed that we should all 'pull ourselves up by our own bootstraps. But then they dug into the taxpayer's pockets to gob up $700 billion to bail out their Gucci-clad Wall Street cronies.

Don't republicons ever tell the truth?

[renate]

3. Republicans really have that Midas touch, don't they?

The only difference being that everything they touch turns to shit.