Summary
WASHINGTON - The Obama administration may let more large, troubled banks suspend interest payments on federal aid, allowing firms to rebuild their capital reserves more quickly and thereby limiting the amount of any additional federal aid that may be needed.
The government initially required aid recipients to issue preferred stock that paid interest of 5 percent a year. It would now allow firms to replace some or all of those government-held shares with common stock that pays no interest. Taxpayers would lose the certainty of a guaranteed return, but could profit if the companies' stock prices increase. The exchanges also would give the government significant ownership stakes in the banks that participate.See the full content of this document
Extract
More Rescued Banks May Suspend Interest Payments
Some banks are likely to need additiona...
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