Bank of America Corp (BAC)

[monkeyfrog]

This is the main hope that shareholders will not be wiped-out as the shorts would have us believe.

"For this reason, the government may need to find a way to safeguard existing shareholders when it provides aid, though this is likely to spur anger by lawmakers and their constituents, a source said. "

http://www.cbsnews.com/stories/2009/01/28/politics/washingtonpost/main4759291.shtml?tag=topStory;topStoryHeadline

"Another danger is that by taking over a substantial portion of a bank's stock and wiping out the investment of the firm's other shareholders, the government could also precipitate a sell-off across the banking system as investors flee, fearing they could be next. "


"Explicit nationalization of financial companies has little support among key Obama officials, sources said. Treasury Secretary Timothy F. Geithner and top White House economic adviser Lawrence Summers think governments make poor bank managers and cannot efficiently manage a vast number of institutions, according to some of their associates. "