AP IMPACT: Some bailout holdings down $9 billion

[jordi_fanclub]

Source: Associated Press

Stock intended to eventually earn taxpayers a profit as part of the Bush administration's massive bank bailout has lost a third of its value — about $9 billion — in barely one month, according to an Associated Press analysis. Shares in virtually every bank that received federal money have remained below the prices the government negotiated.
...
Now, however, the value of that common stock is worth less than $18 billion. If the government exercised all its warrants to purchase the stock today, it would lose money on 51 of its 53 agreements. Taxpayers would be out $9.1 billion.
...
So far, however, only two of the 53 banks can be considered a good investment.
...
"It's a complete mistake to think this is a good investment for us," said Paola Sapienza, a finance associate professor at Northwestern University's Kellogg School of Management, who spearheaded a September protest of the bailout by more than 200 of the nation's leading economists. "It's a gamble. It's like going to Las Vegas."

Read more: http://news.yahoo.com/s/ap/20081205/ap_on_bi_ge/bailout_returns

---

[SpiralHawk]

1. "Another Epic FAIL. At least we are consistent. Smirk." - Commander AWOL (R)

[RUMMYisFROSTED]

2. All the Big Boys on the bottom.

-50%

:woohoo:

[depakid]

3. No one expected the equity interests to make any money in a matter of weeks

or even hold their value.

Maybe in a year or two from now, if the figures still look like this, the arguments won't be so disingenuous.

[TomClash]

4. Agreed

This is a stupid article. It completely misses the obvious point - the USG will not exercise its options anytime soon.