(From Guardian Unlimited)
Leaks in the media indicate that the banks are about to inhale another helping of taxpayer dollars . This round is likely to be considerably larger than the $350bn they swallowed in the bail-out last October.
The leaks from Obama administration officials without names suggest that the money will provide a further subsidy to bank executives and shareholders and may not even resolve the banks' financial crisis. In other words, the banks may yet come back for more.
The rumoured plan is for the government to buy up hundreds of billions of dollars of bad debt from banks and pl ace it in a "bad bank" . The bad bank would then resell these assets for whatever price it could get from private buyers.
The basic problem …