I understand. You found paradise in America, you had a good trade, you made a good living. The police protected you and there were courts of law. And you didn't need a friend like me. But uh, now you come to me and you say - 'Don Corleone, give me justice.'.
-- Marlon Brando
Paulson has skipped the drama and come with the hardline. He didn't wait for the banks to come with their hands like cups, he basically said, here's the favor. You owe me. As the consensus of the economic heads have hoped, the offer comes in the form of preferred stocks, which means the Government gets their piece back first, just like the Godfather, when it comes to collecting that little favor.
So there's the bail.
Note this little para:
Another part of the government’s remedy is to extend the federal deposit insurance to cover all small-business deposits. Federal regulators recently have been noticing that small-business customers, which tend to carry balances over the federal insurance limits, had been withdrawing their money from weaker banks and moving it to bigger, more stable banks.
Hmm. I wonder if those small businesses make more than 250k?
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