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Corporate & Securities Law

: BusinessAssociationsBlog.com

Government Investments in Banks

By Stephen Bainbridge

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Should the government bank bailout take the form of direct equity investment? David Skeel identifies two very serious concerns with such proposals: One is the obvious risk that government ownership would distort the decision making of both the government and the banks going forward. This is indeed a scary prospect. Paulson has suggested that the government will buy nonvoting preferred stock, to...

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Full post as published by BusinessAssociationsBlog.com on October 13, 2008 (boomark / email).

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