Treasury to Take Equity Stake in Banks

As it becomes increasingly apparent that a globally coordinate massive bailout is necessary to save our financial system, the Treasury Department, under the authority of the bailout bill, is now considering taking an equity stake in various banks in exchange for capital.

This is a much better, much smarter plan than the original one to buy junk assets. Coupled with the Fed’s move to buy short-term debt and, hopefully, a globally coordinated effort to likewise shore up international banks, there might actually be a pinprick of light at the end of the tunnel.

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