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Re: Extremist223 post# 270782

Friday, 03/13/2020 1:50:02 AM

Friday, March 13, 2020 1:50:02 AM

Post# of 701532
I'm not aware of any laws against the US government buying equities, but that is not a typical behavior.

The government (Federal Reserve, Treasury) cares about the health of the banking system. Look at the actions from the 2008-9 financial crisis. All of it was directed at providing liquidity to the banking system, either directly or via fixed income asset markets (buying bonds, then the TARP programs).

When banks fail, the FDIC does not take long term ownership. It does what is necessary to make the failed bank sufficiently attractive to an acquirer. That commonly includes reducing deal risk by guaranteeing the value of questionable loans.
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