So who cares if the banks get nationalized?
Posted by JimPresident Obama is treading lightly on the latest twist and turn of the government’s bank bailout plan. The Street has now realized that the taxpayers own 36% of Citibank, as the President’s team seems bent on converting the bailout loans into common stock.
This idea makes perfect sense to me. At least the taxpayers have a fighting chance to make some money off of this debacle. I recognize that a 36% is effective total control of a corporation but I have to hope the Feds will tread lightly and defer to the civilians on the board.
All of the grousing by the opposition party does not seem to be gaining any real traction outside of Fox News. Still, the politically agile administration is working to neatly sidestep the issue.
Over the long run the Feds will divest themselves of all of their stock positions, hopefully at a profit.
