Monday, February 23, 2009

Eating Shitpile

Pay it back? Nah, just give us common stock instead.

In exchange for its investments, the government required the banks to issue preferred shares that pay interest and are designed to encourage repayment after a few years. Under the changes announced this morning, companies instead can give the government preferred shares that can be converted into shares of the company's common stock.

Not enough details, but this sounds like we're just overpaying for shitpile.