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

[Karen Medina]

The Senate was giving Chris Dodd much of the credit for the re-write of the 
bailout bill. So, at first, I was quite disappointed in Dodd. But this re-writing 
may actually be significantly less horrible than Paulsen's original intention. 

While still bailing out the wrong people, it seems less toxic. And I think Dodd 
may have more of a backbone and wisdom than I thought he had. 

-karen medina
---- Original message ----
>Date: Sat, 4 Oct 2008 17:45:20 -0500
>From: "Robert Naiman" <naiman.uiuc at gmail.com>  
>Subject: Re: [Peace-discuss] stock injection option in the bailout?  
>To: "Stuart Levy" <slevy at ncsa.uiuc.edu>
>Cc: peace discuss <peace-discuss at lists.chambana.net>
>
>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
>
>Ambassador Pickering on Iran Talks and Multinational Enrichment
>http://youtube.com/watch?v=kGZFrFxVg8A
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