Monday, 22 December 2008

Anything Goes

Read this December 18 news flash from The American Banker:
A New York private equity firm has agreed to invest $250 million in Flagstar Bancorp, gaining 70% ownership of the thrift company. But the deal’s completion hinges on Flagstar receiving an additional $250 million from the Treasury Department’s Troubled Asset Relief Program.
I do not know the specifics of the transaction. But note the gist of the story. A private firm and the U.S. Treasury are both to invest $250 million in a bank, with the private firm getting 70% of the company.

That is why I called this entry Anything Goes. If you are a U.S. citizen, you can also read it as Your Tax Dollars at Work.