Sunday, January 25, 2009

Moneyburgers!

As the Obama economic team huddles this weekend in an attempt to hammer out the framework of their plan, three options have been bandied about:

* Nationalizing the banks.

* Creating a government-owned "bad bank" to take the toxic assets off of the bank's balance sheet.

* Continuing the Bush Administration rescue plan of pumping in taxpayer money on an as-needed basis.

A nationalization plan would likely wipe out all shareholder equity, including the preferred shares, and turn ownership of the banks over to Uncle Sam.
slimerpaulson - Photo Hosted at Buzznet

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