Banks Held Hostage

Katherine Mangu-Ward

Banks who jumped at bailout money now seem surprised to discover that the fine print gave the government the right to retain ownership stakes in the banks for up to 10 years. Sure, banks were lead to believe the warrants provision was minor, and wouldn't be a problem when the time came to negotiate repayment terms. But if there's anything this financial crisis should have taught us, writes Associate Editor Katherine Mangu-Ward, it is to be skeptical of lenders who casually promise that paying back enormous loans won't be any problem at all (ask anyone with an adjustable-rate mortgage). 

Read all about it here.

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