Thursday, October 9, 2008

Treasury eyeing bank deals

I do not understand the logic of this idea. The governement is going to take a ownership role in banks. When the governmnet audits banks (each bank is audited every year) and they get a bad report is the government going to step in and make sure they get a better grade because they are worried about stock. Are they going to make laws out to help the banks they own stocks in. Is the government going to push for or against jobs because of their influence, either one could be bad depending on what kind of position the bank is in. If the governement buys bank stock the stock price will proabably go up. What happens when they sell the stock, probably go down. Are they going to get insider information to help them time the market leaving the everyday consumer picking up the pieces. There just to me seems to be too much influence, too much conflict of interest and ways this can go wrong.

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