U.S. to Buy Stakes in Nation's Largest Banks - Wall Street Journal

[rightofpeople]

Digg Awareness: U.S. to Buy Stakes in Nation's Largest Banks (http://digg.com/business_finance/U_S_to_Buy_Stakes_in_Nation_s_Largest_Banks)

wsj.com (http://wsj.com/article/SB122390023840728367.html) — The government is set to buy preferred equity stakes in Goldman Sachs Group Inc, Morgan Stanley, J.P. Morgan Chase & Co, Bank of America Corp. (including soon-to-be acquired Merrill Lynch), Citigroup Inc, Wells Fargo & Co, Bank of New York Mellon and State Street Corp -- top political contributors for 2008, including Obama and McCain;


2008 Top Campaign Contributors:

Senator Obama (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00009638) - Democrat

Senator McCain (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00006424) - Republican

Senate Majority Leader Reid (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00009922) - Democrat

Senate Minority Leader McConnell (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00003389) - Republican

Speaker of House Pelosi (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00007360) - Democrat

House Majority Leader Hoyer (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00001821) - Democrat

House Minority Leader Boehner (http://www.opensecrets.org/politicians/contrib.php?cycle=2008&cid=N00003675) - Republican

Democrat or Republican it does not matter.

[mport1]

Wow, dugg.

[thomaspaine23]

http://www.bloomberg.com/apps/news?pid=20601087&sid=alDuNJQDu5KA&refer=home

This part REALLY was an eye-opener:

"None of banks getting government money was given a choice about it, said one of the people familiar with the plans. All of the banks involved will have to submit to compensation restrictions, said the person. "

They have essentially been nationalized

[rightofpeople]

This is from the WSJ article too:

"Some of the big banks were unhappy about the government taking equity stakes, but acquiesced under pressure from Treasury Secretary Henry Paulson..."

Two thoughts I had when reading that, either:

1) It's like a kid saying, "Aww, shucks" when his mom says he can only have one candy bar at the store instead of two - pretending to not welcome needed capital.

2) Or Paulson really did force the banks to be nationalized - highly doubtful, the banks own Paulson.

I tend to believe the first more, the banks are just showing minor complaints that they can't get free bailout money without offering up shares, and so that it won't look so obvious to the world that they will benefit and what they are really doing.

Otherwise, they would be filing lawsuits and refusing.

[rightofpeople]

Hope you had a chance to click the links!

It's startling to see who the top campaign contributors are for the entire leadership in Congress!

Democrat or Republican - it doesn't matter.

Vote for another party!

[undergroundrr]

This part REALLY was an eye-opener:

"None of banks getting government money was given a choice about it, said one of the people familiar with the plans. All of the banks involved will have to submit to compensation restrictions, said the person. "

They have essentially been nationalized

Remember Paulson's new powers, granted by the bailout package. See especially provision 3. They truly have no choice -

(c) NECESSARY ACTIONS.—The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without
limitation, the following:
(1) The Secretary shall have direct hiring authority with respect to the appointment of employees to administer this Act.
(2) Entering into contracts, including contracts for services authorized by section 3109 of title 5, 12 United States Code.
(3) Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required.
(4) In order to provide the Secretary with the flexibility to manage troubled assets in a manner designed to minimize cost to the taxpayers, establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase, hold, and sell troubled assets and issue obligations.
(5) Issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities or purposes of this Act.

[rightofpeople]

Does Paulson still have the Section 8 clause that says he cannot be challeneged in any court of law?

[zach]

BB&T isn't up there. Why?

[rightofpeople]

What's BB&T?

[rightofpeople]

Please post if you digg - I have to go.

[devil21]

What's BB&T?

Another bank.

[rightofpeople]

Very interesting.

"As of June 30, 2008, BB&T Corporation has $136.5 billion in assets; operates approximately 1,500 banking offices in 11 states and Washington, D.C.; and has 31,000 employees."

http://bbt.mediaroom.com/index.php?s=18&cat=8

I'm not sure how to take the comment without doing some more research, but apparently this bank is not part of the corruption?