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No. of Recommendations: 10

The aim is not for the government to own the banks. The equity stakes in these banks will range from tiny majority to substantial majority. In each case, the treasury will take equity and then wind down equity positions. The aim is not to nationalize our banking system. It is to stabilize, at a profit for taxpayers, while then applying new preventive regulations. It is a step by step process. But it needs to begin with a protection to the system (i.e. bailout), which will likely include substantial return of the $700B deployed. But in our opinion, there should be an equity kicker to account for the risk the treasury must take with *OUR* capital.

Tom Gardner
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