Monday, April 20, 2009
A Step Towards Nationalization?
The above link will take you to a New York Times article discussing the possibility of the Treasury Department converting its preferred stake to common equity. For some reason, the author refers to this money as currently being a "loan." This is not my understanding and I do not know why he states this. Regardless of the intentioned holding period, a preferred stock investment is not a loan.
This article just happens to appear as the we near the deadline for the stress test results, Bank of America's earnings release (today) and my May guesstimate of a large bank being nationalized.
Equity futures are down, could be an interesting day.
Posted by MK at 6:33 AM