Political discussion and ranting, premised upon the fact that even a stopped clock is right twice a day.
Wednesday, March 25, 2009
Checks and Balances
Just curious: Will those participating in the Geithner Plan's "markets" to buy up toxic securities be forbidden from holding or investing in the same securities outside of the fund? That is, if a bank holding the securities wants to participate, will it be required to first sell its toxic assets or to include them in the auction no matter what the sale price? Or if a hedge fund participates, will it be forbidden from trying to buy up a security at $30 with the intention of subsequently bidding on it at $50 or $60, then selling its "outside" shares at the newly inflated "market price"?
It seems that serious restrictions need to be in place to prevent opportunism and self-dealing....
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"It seems that serious restrictions need to be in place to prevent opportunism and self-dealing...."
ReplyDeleteI thought that we'd already established that those were the purpose of the plan . . .
CWD