Wednesday, October 15, 2008

Just a little bit scary

So we now know that the federal government - and the treasury department in particular - has "essentially forced" nine major US banks to accept the government bailout. To accept partial government ownership of their company. From today Wall Street Journal:
While the program is voluntary, Treasury essentially forced nine major U.S. banks to agree to take $125 billion from the federal government. Treasury will buy $25 billion in preferred stock from Bank of America -- including soon-to-be acquired Merrill Lynch -- as well as from J.P. Morgan and Citigroup; $25 billion from Wells Fargo & Co.; $10 billion from Goldman Sachs Group Inc. and Morgan Stanley; $3 billion from Bank of New York Mellon; and about $2 billion from State Street. The remainder will be available to small and medium-size institutions that apply for an investment.
So, we have government requiring that private business sell a portion of their business to the government for the supposed good of the nation.

Are you comfortable with that? I, certainly, am not.

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