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Bailout 6: Getting an equity infusion

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Uploaded by on Sep 27, 2008

The bank gets bailed out by an equity infusion from a sovereign wealth fund.

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  • You rock! I am a teacher & I really enjoy your delivery style. Keep up the great work!!

  • Goldman brothers and Lehman Sachs!

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  • @ladicius well it is possible for the company to have say an authorized capital of 5 billion shares at a face value of 1$,now as the total issued capital was only 500 million they still can issue more shares by way of an fpo etc so they could issue shares to the SWF but that would essentially dilute their equity in the company

  • @delegate21 were you responding to a question similar to 'how did swf purchase 2b shares when there were only 500m?'...that was my question...

  • yeah, dude, you're the man!

  • For TARP, the majority of equity infusion was in the form of preferred stock and warrants.

  • The federal reserve in no more federal than federal express. It is a foreign private central bank whose board members are held secret. So when you say our national debt is owed to ourselves that is flat out lie. You need to bone up on some history before you call yourself an economist. Do you know what money is or how it is created? In a true free market system there is no need for any regulatory body to adjust the 'supply' of money or interest rates. Stop reading Keynes and start reading Mises

  • So is an "Equity infusion" what Goldman Sachs did recently to raise $6bn? I haven't been following that closely, but it doesn't seem to me that the shareholders in Goldman got hit by this latest move? If Goldman didn't do an Equity Infusion, then what was it they did?

  • Well if the SWF fund it self was concerned about going bankrupt, say due to a entitlements issue. It would need to make long term investments. The model here shows a functional bank, with toxic assets. Or "the fundamentals are of our economy are strong". This is just a momentary blip, to allow the SWF long term investments to pay entitlements. Is my guess...

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