Tomorrow, the Bush Administration will unveil details of it’s plan to turn some of the largest banks in the country into government-owned entities:
WASHINGTON — The Treasury Department, in its boldest move yet, is expected to announce a plan Tuesday to invest up to $250 billion in large and small banks, according to officials. The United States is also expected to guarantee new debt issued by banks for a period of three years, officials said.
And the Federal Deposit Insurance Corporation will offer an unlimited guarantee on bank deposits in accounts that do not bear interest — typically those of businesses — bringing the United States in line with several European countries, which have adopted such blanket guarantees.
Treasury Secretary Henry M. Paulson Jr. outlined the plan on Monday to nine of the nation’s leading bankers at an afternoon meeting, officials said, in which he essentially told the participants that they would have to accept government investment for the good of the American financial system. This capital injection plan will use a huge chunk of the money authorized for Troubled Assets Relief Program.
Citigroup and JPMorgan Chase were told they would each get $25 billion; Bank of America and Wells Fargo, $20 billion each (plus an additional $5 billion for their recent acquisitions); Goldman Sachs and Morgan Stanley, $10 billion each, with Bank of New York Mellon and State Street each receiving $2 to 3 billion. Wells Fargo will get $5 billion for its acquisition of Wachovia, and Bank of America the same for amount for its purchase of Merrill Lynch.
The goal is to inject massive liquidity into the banking system. The government will purchase perpectual preferred shares in all the largest U.S. banking companies.
And thus the free market suffers yet another death. Not with a bang, but with a whimper.
The fact that this intellectual fraud is being perpetrated by a Republican Administration is perhaps the final proof that anyone who really beliefs in individual liberty should not look to the GOP to protect it.
October 14th, 2008 at 1:27 pm
The Anti-Democratic Nature of US Capitalism Is Being Exposed…
The Article: The Anti-democratic nature of US capitalism is being exposed by Noam Chomsky. Bretton Woods was the system of global financial management set up at the end of the second World War to ensure the interests of capital did not smother wider so…
October 20th, 2008 at 4:07 am
Oh there we go, why dont we just go ahead and hand over the whole F’ing Country now to foriegn banks, letting the treasury give to the banks means control over the commercial side, they already have the national and internation and if we do this we give full power of our commercial transactions to the IMF and worlds bank throug the treasury, looks like a hostile take over of sorts . . .and if you did not understand what i said, then you need to learn more about your banking system. I will leave you with this to ponder . . .
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
-Henry Ford