Monday, April 20, 2009

U.S. May Convert Bank Bailouts to Common Stock - NYTimes.com

In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.

Converting those loans to common shares would turn the federal aid into available capital for a bank — and give the government a large ownership stake in return.
U.S. May Convert Bank Bailouts to Common Stock - NYTimes.com
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