Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

AP IMPACT: Some bailout holdings down $9 billion

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
jordi_fanclub Donating Member (388 posts) Send PM | Profile | Ignore Fri Dec-05-08 07:49 AM
Original message
AP IMPACT: Some bailout holdings down $9 billion
Source: Associated Press

Stock intended to eventually earn taxpayers a profit as part of the Bush administration's massive bank bailout has lost a third of its value — about $9 billion — in barely one month, according to an Associated Press analysis. Shares in virtually every bank that received federal money have remained below the prices the government negotiated.
...
Now, however, the value of that common stock is worth less than $18 billion. If the government exercised all its warrants to purchase the stock today, it would lose money on 51 of its 53 agreements. Taxpayers would be out $9.1 billion.
...
So far, however, only two of the 53 banks can be considered a good investment.
...
"It's a complete mistake to think this is a good investment for us," said Paola Sapienza, a finance associate professor at Northwestern University's Kellogg School of Management, who spearheaded a September protest of the bailout by more than 200 of the nation's leading economists. "It's a gamble. It's like going to Las Vegas."

Read more: http://news.yahoo.com/s/ap/20081205/ap_on_bi_ge/bailout...



Printer Friendly | Permalink |  | Top
SpiralHawk Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 08:28 AM
Response to Original message
1. "Another Epic FAIL. At least we are consistent. Smirk." - Commander AWOL (R)
Printer Friendly | Permalink |  | Top
 
RUMMYisFROSTED Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 08:41 AM
Response to Original message
2. All the Big Boys on the bottom.
-50%

:woohoo:
Printer Friendly | Permalink |  | Top
 
depakid Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 09:19 AM
Response to Original message
3. No one expected the equity interests to make any money in a matter of weeks
or even hold their value.

Maybe in a year or two from now, if the figures still look like this, the arguments won't be so disingenuous.
Printer Friendly | Permalink |  | Top
 
TomClash Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-05-08 10:31 AM
Response to Reply #3
4. Agreed
This is a stupid article. It completely misses the obvious point - the USG will not exercise its options anytime soon.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Fri Dec 19th 2014, 07:50 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC