“Governments may hold ordinary shares,
but they will never be ordinary shareholders.”
- Financial Times Editorial, October 15, 2008
- Financial Times Editorial, October 15, 2008
An October 15 Editorial in the Financial Times outlines the problems associated with governments taking ownership shares in banks. You can read it for yourself on the Financial Times Editorial link to the left of this blog.
This morning the Swiss joined the party as they purchased a 9% share in UBS. The two good signs were that Credit Suisse declined such a purchase, and members of the Swiss Parliament on both sides of the aisle had the good sense to disapprove.
We’ve all lived with government regulation, but there is a huge difference between government regulation of it's citizens and privately held businesses, and government ownership.
When the fear of economic ruin and the loathing of bankers has receded we will see signs that government ownership in our banks is stifling growth, service and innovation. Oh, and competition. But it may be too late by then.
Mr. Paulson has not announced an exit strategy.
If you think this goes away quickly or quietly, tell me then, when do you think the TSA will vacate the Airports? Exactly! What you remember as normal pre-911 will never return. The TSA is the new normal in Airports.
A prolonged financial crisis will entrench the new normal (normal= our government owning portions of banks.)
The Paulsen take-over plan (you call it what you want to me it tastes like a hostile take-over plan!) includes a total of $250 billion for buying shares in thousands of banks over the next couple of months. So far, Paulsen has only spent $125 Billion.
The bottom line is that our current administration has used every crisis to take over more and more of this Nation’s institutions and services. They have been aided and abetted by a Congress walking in lock-step with them – despite all the tough talk and occasional rogue votes.
Talk about regime change!
I’m just not sure that Paulsen understands the difference between running the Treasury Department and Alcoa (where he was Chairman when he was tapped for the job.) The job was to restore liquidity and confidence, Henry, not the vertical integration of Treasury.
I’m betting the airlines are next.
This morning the Swiss joined the party as they purchased a 9% share in UBS. The two good signs were that Credit Suisse declined such a purchase, and members of the Swiss Parliament on both sides of the aisle had the good sense to disapprove.
We’ve all lived with government regulation, but there is a huge difference between government regulation of it's citizens and privately held businesses, and government ownership.
When the fear of economic ruin and the loathing of bankers has receded we will see signs that government ownership in our banks is stifling growth, service and innovation. Oh, and competition. But it may be too late by then.
Mr. Paulson has not announced an exit strategy.
If you think this goes away quickly or quietly, tell me then, when do you think the TSA will vacate the Airports? Exactly! What you remember as normal pre-911 will never return. The TSA is the new normal in Airports.
A prolonged financial crisis will entrench the new normal (normal= our government owning portions of banks.)
The Paulsen take-over plan (you call it what you want to me it tastes like a hostile take-over plan!) includes a total of $250 billion for buying shares in thousands of banks over the next couple of months. So far, Paulsen has only spent $125 Billion.
The bottom line is that our current administration has used every crisis to take over more and more of this Nation’s institutions and services. They have been aided and abetted by a Congress walking in lock-step with them – despite all the tough talk and occasional rogue votes.
Talk about regime change!
I’m just not sure that Paulsen understands the difference between running the Treasury Department and Alcoa (where he was Chairman when he was tapped for the job.) The job was to restore liquidity and confidence, Henry, not the vertical integration of Treasury.
I’m betting the airlines are next.
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