[Peace-discuss] stock injection option in the bailout?

[Robert Naiman]

http://banking.senate.gov/public/_files/latestversionAYO08C32_xml.pdf
...
SEC. 113. MINIMIZATION OF LONG-TERM COSTS AND MAXIMIZATION OF BENEFITS
FOR TAXPAYERS.
...
(d) CONDITIONS ON PURCHASE AUTHORITY FOR WARRANTS AND DEBT INSTRUMENTS.—
(1) IN GENERAL.—The Secretary may not purchase, or make any commitment
to purchase, anytroubled asset under the authority of this Act, unless
the Secretary receives from the financial institution
from which such assets are to be purchased—
(A) in the case of a financial institution,
the securities of which are traded on a national
securities exchange, a warrant giving the right
to the Secretary to receive nonvoting common
stock or preferred stock in such financial institution, or voting
stock with respect to which,
the Secretary agrees not to exercise voting
power, as the Secretary determines appropriate;
or
(B) in the case of any financial institution
other than one described in subparagraph (A),
a warrant for common or preferred stock, or a
senior debt instrument from such financial in12
stitution, as described in paragraph (2)(C).

On Sat, Oct 4, 2008 at 3:29 PM, Ricky Baldwin <baldwinricky at yahoo.com> wrote:
> Heard the suggestion this a.m. on npr that the final bailout bill includes a "stock injection plan" option, whereby for taxpayer money the government would get preferred shares in the banks we bail out - as opposed to nothing.  Do we know if this is true, or if it's worth pushing for now that the bill has passed?
>
>  Ricky
>
>
> "Only those who do nothing make no mistakes." - Peter Kropotkin
>
>
>
>
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-- 
Robert Naiman
Just Foreign Policy
www.justforeignpolicy.org
naiman at justforeignpolicy.org

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