The Great ’08 Bailout proceeded apace, everybody reports this morning.
First step? Hank Paulson‘s rescue-plan chief Neel Kashkari carried cash to Wall Street bankers whose poor decisions led to the market crash.
The Washington Post calls it “partial nationalization.” Now the money will start flowing — on Wall Street.
More from the Post‘s excellent story, by David Cho, Neil Irwin and Peter Whoriskey:
The Treasury Department’s decision to take equity stakes in banks represents a significant reversal, coming just weeks after Treasury Secretary Henry M. Paulson Jr. had opposed the idea. . . .
The government’s initiative, which was to be announced this morning before the markets open for New York trading, is part of a wider plan that goes beyond the $700 billion rescue package approved by Congress earlier this month. . . .
In pressing the bank executives to accept partial government ownership, Paulson’s message was clear: Though officially the program was voluntary, the banks had little choice in the matter. In exchange for giving the Treasury minority stakes, the nine firms would jointly receive an investment worth $125 billion. The government would make another $125 billion available for the next 30 days to thousands of other banks and thrifts across the country.
Don’t expect a trickle-down effect.
Meanwhile . . .
NO PARTICULAR ORDER:
N.Y. Daily News: ‘Brady Bunch star admits to swapping sex for drugs’
Wall Street Journal: ‘Obama Takes Solid Lead Over McCain in Four Battleground States’
Register (U.K.): ‘Robot vacuum cleaners — now with grenade launchers’
Wall Street Journal: ‘U.S. to Buy Stakes in Nation’s Largest Banks’
Scotsman (U.K.): ‘Airport “bomb” jury sees film of panicking passengers’
N.Y. Post: ‘SURE PAYS FOR MARTY TO BE MIKE’S BUDDY’
L.A. Times: ‘Movie stars’ stock plummets’
Wall Street Journal: ‘ “Smart Money” Stays on the Sides’
Register (U.K.): ‘Wal-Mart punts industrial strength feminine deodorant’