"Ok, our FIRST bright idea didn't work: here's ANOTHER bright idea!"
WASHINGTON — Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, according to government officials.
Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it. Such a move would quickly strengthen banks’ balance sheets and, officials hope, persuade them to resume lending. In return, the law gives the Treasury the right to take ownership positions in banks, including healthy ones.
I had no idea that the panic-driven rape of the American taxpayer allowed the Government to simply take over banks as they saw fit, OR allowed them to just hand banks our money whenever the banks asked them to.