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Friday, February 27, 2009. Prof Hamilton has argued that converting banks preferred stock to common equity is never going to work since interest payments were never a problem for banks anyway. a better option is to restructure the economy i.e. erase equity value, sell the assets, and payoff the debtors. Doing so might be economically prudent, but is not politically feasible considering the stake of sovereign funds in the banks. this is the argument Brad Setser presents , quoting Wang Qishan. Tax data sh.CONTENT
This web page slashnme.blogspot.com states the following, "Friday, February 27, 2009." We saw that the webpage said " Prof Hamilton has argued that converting banks preferred stock to common equity is never going to work since interest payments were never a problem for banks anyway." It also said " a better option is to restructure the economy i. erase equity value, sell the assets, and payoff the debtors. Doing so might be economically prudent, but is not politically feasible considering the stake of sovereign funds in the banks. this is the argument Brad Setser presents , quoting Wang Qishan."