Sooo the Fed government will turn these banks into Fannie and Freddie?
Can’t imagine the gov. in charge of the financial markets! Nancy and Harry must be drooling...
No. They are injecting cash without controls but they are creating a situation that require banks to lend or change management.
At some point, possibly immediately after the preferred stock is issued, the public may be able to buy it from the government and we get our money back.
I think it is a pretty fair plan.