Obama’s bank plan could rob the taxpayer [Financial Times]
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Acrylicist
Mar 26, 2009, 9:31:05 AM3/26/09
to Time as Money
The Geithner-Summers plan, officially called the public/private
investment programme, is a thinly veiled attempt to transfer up to
hundreds of billions of dollars of US taxpayer funds to the commercial
banks, by buying toxic assets from the banks at far above their market
value. It is dressed up as a market transaction but that is a fig-
leaf, since the government will put in 90 per cent or more of the
funds and the “price discovery” process is not genuine. It is no
surprise that stock market capitalisation of the banks has risen about
50 per cent from the lows of two weeks ago. Taxpayers are the losers,
even as they stand on the sidelines cheering the rise of the stock
market. It is their money fuelling the rally, yet the banks are the
beneficiaries
Read more at http://www.ft.com/cms/s/0/b3e99880-1991-11de-9d34-0000779fd2ac.html.
investment programme, is a thinly veiled attempt to transfer up to
hundreds of billions of dollars of US taxpayer funds to the commercial
banks, by buying toxic assets from the banks at far above their market
value. It is dressed up as a market transaction but that is a fig-
leaf, since the government will put in 90 per cent or more of the
funds and the “price discovery” process is not genuine. It is no
surprise that stock market capitalisation of the banks has risen about
50 per cent from the lows of two weeks ago. Taxpayers are the losers,
even as they stand on the sidelines cheering the rise of the stock
market. It is their money fuelling the rally, yet the banks are the
beneficiaries
Read more at http://www.ft.com/cms/s/0/b3e99880-1991-11de-9d34-0000779fd2ac.html.
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