U.S. May Take Ownership Stake in Banks

U.S. May Take Ownership Stake in Banks

www.nytimes.com

Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, according to government officials.

Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it. Such a move would quickly strengthen banks’ balance sheets and, officials hope, persuade them to resume lending. In return, the law gives the Treasury the right to take ownership positions in banks, including healthy ones.

(visit the link for the full news article)

Whoa, I think we need a whole lot more information about this. Is this a voluntary agreement between the US and the banks, or can the Fed march in and "inject cash" into whichever bank it wants to?

There's generally a good reason for it if a bank is heading towards bankruptcy. The banks messed up, and they messed up good. Artificially holding their heads above water isn't going to magically make the problems disappear as we're seeing with the additional loan AIG requested just today.

It seems to me that if the banks don't trust each other - and that's one of the current problems causing the market turmoil - then the only recourse is to let natural selection take its course. No, it's not pleasant and yes, it would cause economic reverberations, but we're already experiencing a deep recession. Hank even said earlier today that things aren't going to get better overnight, that it will take time. Anyone with an ounce of common sense knows that we'll have tough times ahead no matter what sticksave moves the Fed tries to pull out. It will suck, but as long as we let the cycle complete its course, we'll get through it. The longer it's drawn out with moves like this, the longer it will take for the inevitable, further drawing out the misery of everyone in this country.

www.nytimes.com
(visit the link for the full news article)

It's a scary thought that the FED already dictated American policy through their shareholders . . . now the FED/Treasury can claim ownership of banks however they deem fit. Healthy, insolvent, . . . whatever?

So we are moving from being controlled by the banks to owning them . . . thus consolidating them all under one roof . . . so, if the government is going to control the banks, which are controlled by the "BANKS" . . . if we rise against any action . . . our money just disappears and we are cut off from the system.

Who needs RFID chips when you can just turn people off at the pump?

There are so many usurpations of power written into the bailout document that I'm not sure why people aren't demanding that their elected "officials" don't look into this thing. If any member of congress that is currently serving is still there in 4-6 years, we know it's fixed at all levels. But, I'm sure most on here already suspected that.

I give this whole thing 18mos before only the "Big Three" (BOA, Citi, Morgan) are left servicing America.

(Edit)


[edit on 9/10/2008 by Badge01]

isnt the treasury funded by the taxpayer?,in other words this is a
centralised nationalisation, a trasference of power from the corporate sector to the executive payed for entirely with taxpayers money.

and since the people have little or no say in the running of the banks and would be responsible for all loses should the executive take over......

its plain who the winners are......the executive!!!!,once again at everyone elses expense and cost!

its criminal whats occuring the public is being bankrupted by the follies of private corporations!!!

[edit on 9-10-2008 by welivefortheson]

[edit on 9-10-2008 by welivefortheson]

Let's see, now they are taking ownership in not only mortgage companies, but private banks. I also heard they are loaning money out to private companies. They will bail out the auto makers before too long too. So in the end, what wont they own? I can tell you one more thing they will own, every man, child, and woman in this country and the price they will exact for that ownership will be great.

Its on Yahoo too.
biz.yahoo.com...

Oh yeah. I get it now.

Own our bank now... the NWOs biggest push of all.

Don't do it... when you buy stock for ownership.. what happens..
the stock goes down.

The FED owns the government and now the government owns our
banks... and the worth of the banks go down.

Easy way to get the depressive credit nuts off our backs and
out of the Illuminati news services.

Pay them off with blood money.

Blood Sweat and Tears Money.

Kick that fruit cake out of the Treasury.
And get rid of Bush and his cronies.