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.
1 comment:
May 7, 2009 is the date by which I believe a major bank will be nationalized. This was first mentioned in a March 30 post.
Post a Comment