On Mar 25, 2008, at 12:51 AM, Jon Baranov wrote:

The takeover of NS could have been more costly in
absolute terms, but that's not the point. Take a given
bank. You can either take over the bank, assuming the
risk of its assets, or you can pay a private bank to
buy the crappy bank from its shareholders. The Fed
"paid" JPM to assume the risk and pay off
shareholders. Simple arithemetic would seem to imply
that the latter is more costly, no?

I don't know how you do "simple arithmetic" without any actual numbers.

Doug
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