Please explain to me – and please be specific – how I would benefit from the bailouts? Seeing as I don’t have any investments in any parts of the capital structures of any bank that is receiving any government assistance (outside of generic FDIC insurance), I’m quite curious to find out. This should be a fascinating answer.
Signed,
Banker/Prick
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That may have been an inaccurate characterization on my part. Does your bank own any preferreds or other debt of the big banks?
Did you say in another thread that you were in favor of the big banks’ bondholders taking a hit? If so, you may have a reasonable plan. However, you appear to believe that the government is heading in that direction (and that the government wants to make money with TARP). I haven’t seen any evidence that would point to that.
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As to your first question, no. How on earth can you read my posts and come to the conclusion that I would think it was o.k. to own any part of the capital structure of the Big Pigs? But I digress.
Regarding the Big Banks’ bondholders taking a hit, I don’t have a problem with this… so long as it’s part of a “rolling recap.” So, as I’ve been saying, I’m not in favor of wiping these folks out through receivership, but if things continue to deteriorate I have no issue with forcing a conversion of their bonds into equity if that becomes necessary. Better than putting more taxpayer money at risk, right?
