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

[Robert Naiman]

A plain reading of the text - which I just sent - would suggest that
it's not optional, but mandatory. I don't think it was slipped in - it
was part of the demands and part of the deal.

As I read the text - which I did quickly - if the asset was purchased
from a company that has preferred shares, the govt has to get
preferred shares. If the asset is purchased from an entity that
doesn't have preferred shares, the govt has to get a "senior debt
instrument."

On Sat, Oct 4, 2008 at 5:37 PM, Stuart Levy <slevy at ncsa.uiuc.edu> wrote:
> On Sat, Oct 04, 2008 at 01:29:50PM -0700, Ricky Baldwin 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?
>
> Mention of that was also in this week's This American Life, which did a special
> program on the bailout and the misregulation that led up to needing it.
>
> They had the impression that the stock-injection option had been slipped into the
> bill -- they did not even know who had done it -- but they did think that it
> survived the Senate and House votes, as an option which the Treasury Sec'y could exercise.
>
> It sounds like a Very Good Thing for us to support that!!
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-- 
Robert Naiman
Just Foreign Policy
www.justforeignpolicy.org
naiman at justforeignpolicy.org

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