Obama and Geithner will be converting the government's (taxpayers) recently acquired preferred bank shares to common stocks. I know when they are converted the banks will not have to pay dividends. Like Clint Eastwood in Dirty Harry I believe..."a man has to know his limitations". While I am strongly suspicious, I don't know enough about the banking industry to comment with any authority, whether this is a sinister power play or a good thing for the country.

Could one of the TOTV banking or financial wizards explain in layman's terms what is about to happen regarding the conversion and is it a good for America.

Kahuna, haven't heard from you in a while. This one clearly falls into your area of expertise. Your professional viewpoint would carry significant weight and credibility. I, for one, would sincerely appreciate a straightforward, no spin, no frills explanation from anyone who understands the implications of what is about to happen regarding the conversion.

Great post and great question CABO !!

If I may, would like to add this specific question regarding the same issue...

It appears that the US govt will be the largest single stockholder....many operating decisions need board approval.....wondering who votes and how.

the entity this stock would be a part of...who would or could be board/voting members. When a knowledgeable answer comes forth, I would also like to know where and how this entity fits into our so called free enterprise system?
If majority ownership is the government what is the implication of the role the treasury would/could play, if any.
Big corporations take weeks, months and years to reorganize in significance. Where in the current administration is all the business wisdom held to make these pronouncements?
And many more questions but I will rest for now!

BTK

Here's a primer on the subject:

http://www.startupcompanylawyer.com/...-common-stock/

Call it what you want. The government is taking control of the banks. It does not need to. Why do you think they are?

Yoda

Originally Posted by Yoda

Call it what you want. The government is taking control of the banks. It does not need to. Why do you think they are?

Yoda

Because of the Golden Rule: S/he with the gold, rules! And the more of it you control, the more you rule versus govern.

I would suggest that when this is complete, the government OWNS the economy lock stock and barrel !! They basically own the banking system !!

This is the reason that the stock was preferred from the start and now under the guise of "saving taxpayer money" it wills switch and give the government the control they want !!

Dont listen to what he says...watch what he does !!