Cheap money! Come and get it, bankers. Uncle Sam is opening the vaults at the Treasury. Oh, there will be strings attached, of course. And if your bank desperately needs the money, the government won't give it to you.
Some banks taking the money are salivating at the chance to grow their loan portfolios and perhaps gobble up a few weaklings among area banks. The Treasury is offering to buy preferred stock in banks. The money counts as capital, which means that a healthy bank could, in theory, make new loans in an amount 10 times the amount of the Treasury's investment. The government will also take warrants allowing it to take stock in the company, diluting current shareholders.
>> There would be limits on golden parachutes.
More worrisome: The feds say they may add additional requirements later, and there are rumblings in Congress about lending requirements and restrictions.
Via stltoday.com/ssave
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