Government To Buy Pieces Of Nine Large Banks?

The US Treasury is apparently ready to buy significant stakes in nine of the largest financial firms in America. The trouble with the report is that no one knows for certain which companies are part of the package, or at least no one is saying.

According to The Wall Street Journal, "The U.S. government is set to buy preferred equity stakes in nine top financial institutions as part of its new comprehensive plan to tackle the credit crisis."

It is also a mystery when the investments will be made or how much money is involved. Treasury Secretary Henry Paulson will probably not even tell the banks’ board of directors how he plans to proceed until he has the shares in hand.

Beyond that, the program is crystal clear.

Douglas A. McIntyre