American voters didn’t get to decide on the bailouts, but common stock shareholders of these big banks will be asked to approve these preferred stock issues to the government. They’ll vote “yes” for the big handouts. It’s far better for them than bankruptcy. Will the preferred stock be voting stock? Will the government get to select some board members? Probably yes. Providing money without strings attached is very unlikely. Will bank boards be enlarged? If the government gets to choose some board members, that’s bad. The government will be running the banks. It’s nationalization of the banks. By the way, … Continue reading Will government sit on bank boards?