January 21, 2009
Financial stocks plunged this week, renewing the debate over how to fix the banking system. The Treasury’s remaining $350 billion in TARP funds would be enough to buy the existing common equity of the U.S. banking system, but buying existing stock wouldn’t provide the banks with new capital. To fix the banks, the Obama administration must select from a range of options that include capital injections, asset purchases, a ‘bad bank’, or nationalization.
El-Erian: We Have to Bring the Banking Sector Back To Life
Economist: Inside the Banks
Economist: The Spectre of Nationalisation
Gapper: Nationalisation is Not a Panacea
Editorial: Big and Bad
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