As part of its $700-billion bank bailout, the U.S. government is injecting $45 billion of taxpayers’ cash into each of the two most impaired institutions in the elephantine herd, Bank of America and Citigroup. According to James K. Galbraith, an economic policy expert at the University of Texas, stuffing banks with money just enables incumbent management to hang on and enables current holders of bank stocks to pretend they still have value. Galbraith says the bailed-out banks should be declared insolvent and taken over by the FDIC to be restructured or split up.
Los Angeles Times
We already own the banks- shouldn’t we run them?