Comments on: Will convertible-bond buyers help prevent bank nationalization? http://blogs.reuters.com/felix-salmon/2009/04/20/will-convertible-bond-buyers-help-prevent-bank-nationalization/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Don the libertarian Democrat http://blogs.reuters.com/felix-salmon/2009/04/20/will-convertible-bond-buyers-help-prevent-bank-nationalization/comment-page-1/#comment-611 Mon, 20 Apr 2009 15:50:45 +0000 http://blogs.reuters.com/felix-salmon/2009/04/20/will-convertible-bond-buyers-help-prevent-bank-nationalization/#comment-611 “the last thing it wants is to become the single largest shareholder in most of America’s biggest banks”

1) It will if it has to:

http://www.nytimes.com/2009/04/20/busine ss/20trustees.html?ref=business

“The Treasury Department is poised to become Citigroup’s biggest shareholder, obtaining as much as 36 percent of its voting shares, and officials plan to turn over those shares to outside trustees as well. And if any of the 18 other large banks now undergoing government “stress tests” are told they need more capital, the government is likely to acquire more voting shares and turn them over to trustees, too.”

2) That chance is terrifying banks into making tough decisions:

http://www.nytimes.com/reuters/2009/04/2 0/business/business-banks-europe.html?re f=business

“That dilemma faces many banks. Dozens of lenders in Europe and the United States have been shored up with rescue funds from governments, but many are keen to limit their reliance on the state and selling profitable units is the most realistic alternative.”

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