Ok, so the Obama team is opposed to nationalizing. Rather than nationalizing it is "investing" in Citi and getting preferred stock. Preferred stock simply means the government isn't trying to own Citi. Once the company rebounds it will pay off the preferred stock. Umm, what if that doesn't happen?
Well, today the government's stake of preferred stock has been converted to common stock. Overnight the American people have become 1/3 owners of this bank.
Congratulations!
This is nationalizing by another name.
Do these banks pay dividends to their stockholders?! :) Yeah, yeah, wishful thinking.
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