Small Investors May Be Enlisted in Bank Bailout and Echoes of War Bonds

I understand that Treasury may want to have Main Street American investors have the ability to invest in the bailout funds akin to a mutual fund investment.

I believe a legitimate question is raised about what happens if one or more of these large sponsors fails or the underlying fund “breaks the buck.” If all does not go well and the assets are ultimately sold by the bailout fund at a loss will the government and taxpayers underwrite the risk for these bank bailout bonds, or will the banks who are regulated by the banking regulators be charged additional fees to recoup these losses or will Main Street investors be asked to recognize these losses which some will argue are fundamentally attributable to the large money-center banks in the first place.
I encourage your comments.


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