Authors:

  • David Scharfstein
  • Jeremy Stein

Excerpt

This Bailout Doesn't Pay Dividends. Jeremy Stein, David Scharfstein, October 21, 2008, Article. "On Oct. 13, the chief executives of nine large American banks were called to a meeting at the Treasury Department. At the meeting, Secretary Henry Paulson offered them $125 billion from the federal government in exchange for shares of preferred stock. The chief executives accepted his terms. In some accounts of the meeting, Secretary Paulson is described as playing the role of the Godfather, making the banks an offer they could not refuse. But in one important respect, he was more Santa Claus than..." (May require user account or purchase) Link