ft.com - 2/6/2009
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US officials are examining ways gradually to convert government stakes in banks into ordinary shares as banks accumulate losses, according to people close to the discussions. The point would be to provide a drip-feed of additional common equity as needed to cover losses – without the government ...
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If US converts bank investments to common shares, stocks will take hit
BloggingStocks —
... According to the FT, as the new Administration considers it options for putting more money into troubled financial firms, "One idea that has been considered by policymakers is for the government to change its existing holdings in the banks, which have taken the form of preferred shares - non-voting stock that carries a fixed dividend - into convertible preferred shares that could be converted into common stock." ...
US eyes converting bank stakes
FT Alphaville —
US officials are examining ways gradually to convert government stakes in banks into ordinary shares as banks accumulate losses. The aim would be to provide a drip-feed of additional common equity as needed to cover losses – without the government owning a larger stake in the banks than is necessary. Treasury secretary Tim Geithner will announce the financial sector rescue plan on Monday along with policies designed to reduce foreclosures and boost the housing market.
If US converts bank investments to common shares, stocks will take hit
BloggingStocks —
... According to the FT, as the new Administration considers it options for putting more money into troubled financial firms, "One idea that has been considered by policymakers is for the government to change its existing holdings in the banks, which have taken the form of preferred shares - non-voting stock that carries a fixed dividend - into convertible preferred shares that could be converted into common stock." ...
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