AP: World stocks gain as US bails out Bank of America

[bill]

Re: AP: World stocks gain as US bails out Bank of America

My bet is this bank eventually gets nationalized [too big to fail] and the current common equity holders get wiped out completely.

I think you are right.
Here's the man to do it, Geithner
http://finance.senate.gov/sitepages/...0Questions.pdf

FINANCE COMMITTEE QUESTIONS FOR THE RECORD

Hearing on
Confirmation of Mr. Timothy F. Geithner to be
Secretary of the U.S. Department of Treasury

January 21, 2009

Page 64

Question 4:
Do you believe that nationalizing our financial institutions is necessary to save our
economy?

I believe that the best outcome for the economy is a financial system that resides in
private hands, with appropriate and effective oversight and regulation, and strong
incentives for private market participants to invest. We nonetheless face a situation in
which the U.S. government is currently providing extraordinary support to many
financial institutions in order to avoid a catastrophic collapse in the functioning of the
system and in the flow of credit to households and businesses. We believe these
aggressive actions are necessary to prevent the need for an even greater outlay of funds in
the future. However, we will make sure that the support the government is providing
comes with strong, carefully designed conditions to protect the taxpayer, to provide much
greater transparency about how the money is being spent and the results being generated,
and to improve the possibility that private capital comes in and replaces government

capital as quickly as possible.

http://finance.senate.gov/sitepages/legislation.htm