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

peaceandlove · 04-20-2009, 10:31 PM

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

White House: Approach will prevent need to seek more cash from Congress

By Edmund L. Andrews

updated 2:17 a.m. ET, Mon., April 20, 2009

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.

Continues: http://www.campaignforliberty.com/wire.php?view=4286

Mike at FeverIAm Commentary:

"Wait for it folks, it's coming."

Specific to this article starts at 8:23.

Video (13:56): http://www.youtube.com/watch?v=FnYuk...e=channel_page

04-20-2009, 10:31 PM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	U.S. May Convert Banks’ Bailouts to Equity Share U.S. May Convert Banks’ Bailouts to Equity Share White House: Approach will prevent need to seek more cash from Congress By Edmund L. Andrews updated 2:17 a.m. ET, Mon., April 20, 2009 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. Continues: http://www.campaignforliberty.com/wire.php?view=4286 Mike at FeverIAm Commentary: "Wait for it folks, it's coming." Specific to this article starts at 8:23. Video (13:56): http://www.youtube.com/watch?v=FnYuk...e=channel_page Last edited by peaceandlove; 04-24-2009 at 09:04 PM.