The U.S. government is spending the taxpayers money to purchase the majority shares of preferred stock in most banks; which their entertaining the option to exchange them for common shares. According to Bloomberg.com,
If the U.S. were to convert all of its holdings into common shares, it would own more than 80 percent of the company [Citigroup].
Charlotte, North Carolina-based Bank of America, which has received $45 billion in TARP funds in exchange for preferred shares and warrants, would be 66 percent owned by the government if its entire stake were converted to common equity, according to data compiled by KBW Inc., a New York-based investment bank. The figure would be 69 percent at Regions Financial Corp. in Birmingham, Alabama, which has received $3.5 billion from the U.S. It would be 83 percent at Fifth Third Bancorp, the largest Ohio-based lender, which got $3.4 billion.
KBW calculated the government stakes based on a conversion price of 80 percent of the stock’s value as of Feb. 5.
The prospect of nationalized banks is something the American people can not tolerate! Call your Congressman and your Senator and tell them we don't want to transition into quasi-socialism/communism. Remember, this is America! The country that never emphasized giving handouts to low-lifes, but giving out opportunities to the responsible, hard-working American!