Home › Forums › Financial Markets/Economics › Fed partially nationalizes banks…..Wow…
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October 10, 2008 at 7:44 PM #285722October 10, 2008 at 8:19 PM #285732patientlywaitingParticipant
George Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.
http://www.pbs.org/moyers/journal/10102008/profile.html
BILL MOYERS:You would put it where?
GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.
You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.
BILL MOYERS:Of the bank?
GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.
October 10, 2008 at 8:19 PM #285680patientlywaitingParticipantGeorge Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.
http://www.pbs.org/moyers/journal/10102008/profile.html
BILL MOYERS:You would put it where?
GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.
You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.
BILL MOYERS:Of the bank?
GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.
October 10, 2008 at 8:19 PM #285724patientlywaitingParticipantGeorge Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.
http://www.pbs.org/moyers/journal/10102008/profile.html
BILL MOYERS:You would put it where?
GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.
You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.
BILL MOYERS:Of the bank?
GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.
October 10, 2008 at 8:19 PM #285390patientlywaitingParticipantGeorge Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.
http://www.pbs.org/moyers/journal/10102008/profile.html
BILL MOYERS:You would put it where?
GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.
You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.
BILL MOYERS:Of the bank?
GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.
October 10, 2008 at 8:19 PM #285701patientlywaitingParticipantGeorge Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.
http://www.pbs.org/moyers/journal/10102008/profile.html
BILL MOYERS:You would put it where?
GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.
You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.
BILL MOYERS:Of the bank?
GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.
October 11, 2008 at 9:31 PM #286083larrylujackParticipantNo surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.October 11, 2008 at 9:31 PM #286377larrylujackParticipantNo surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.October 11, 2008 at 9:31 PM #286396larrylujackParticipantNo surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.October 11, 2008 at 9:31 PM #286421larrylujackParticipantNo surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.October 11, 2008 at 9:31 PM #286425larrylujackParticipantNo surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.October 12, 2008 at 12:21 AM #286183kewpParticipantBuy the time this is all over, credit will be socialized.
October 12, 2008 at 12:21 AM #286477kewpParticipantBuy the time this is all over, credit will be socialized.
October 12, 2008 at 12:21 AM #286494kewpParticipantBuy the time this is all over, credit will be socialized.
October 12, 2008 at 12:21 AM #286521kewpParticipantBuy the time this is all over, credit will be socialized.
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