U.S. Treasury Secretary Timothy Geithner’s strategy to aid the nation’s banks will likely emphasize guarantees of toxic assets over proposals to create a so-called aggregator bank that would remove them from balance sheets, according to people familiar with the plan.
How could they remove them. Does Treasury have a few more trillion that the taxpayer will cough up?
The government guarantees, which might be modeled on those already given to Citigroup Inc. and Bank of America Corp., may be coupled with the purchase of preferred shares in the banks that would be later convertible into common stock, some of the people said. The aggregator bank or ‘bad bank,’ has lost favor, in part because the potential costs involved, they added.
http://www.bloomberg.com/apps/news?pid=20601103&sid=a4kNe4UbH6k8&refer=news
That worked nicely for shareholders didn't it?
This plan reminds me of when I went to the racetrack, and this old grizzled veteran at the track, was telling me how much he loved this horse. He told me to bet a perfecta with another of his hot picks. He kept saying, "I'll guarantee it! I'll guarantee it! You won't lose!"
Now you have the younger version of him, dressed in a suit, working at Treasury!
And once again, he wants to use your money!
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