Losing While Winning

After spending so much to save the banks from collapse the government is now suing them for roughly $30 billion! That’s the amount lost by Fannie and Freddie and attributable to the big banks. Even if these suits have merit, this drama has no winners. If the gov’t wins it still loses as banks will have to come up with billions which will kill earnings, reduce lending, and may push some banks over the edge requiring another bailout!

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