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In return for the capital, the banks will sell the Treasury preferred stock that will pay a 5% annual dividend. They'll also grant the government warrants to buy common stock. The warrants could pay off for taxpayers if the banks thrive and their stocks rise over time.
There is just one way to make the US government’s policy towards the banks work. That is for the Congress to vote another $1.5 trillion worth of additional TARP money for the banks - $1 trillion to buy the remaining toxic assets off their balance sheets, and $0.5 trillion worth of additional ca...
Thu, Apr 16 | from naked capitalism