Jim: > I'm not sure, but I think what happens when a bank is nationalized or > put into receivership (or whatever the euphemism is -- how about "put > in the penalty box"?) it's the stockholders that lose. Those who hold > the banks' bonds would be at the front of the line to be compensated, > since it's a contractual obligation to pay them. However, they may > make less than they had planned on, taking a haircut.[*]
As far as I know, at the time a bank is nationalized, the equity holders had gotten wiped out already. After nationalization, the bond holders may get wiped out also, depending on what the government does. For example, take a look at here: http://www.fool.com/investing/dividends-income/2009/02/19/nationalizing-the-banks-is-a-horrendous-idea.aspx Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
