Old 02-24-2009, 04:45 AM
  #16  
joenew61
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Join Date: Feb 2007
Posts: 18,196
Default Re: Help Me Understand This Bank Bailout Thing

Yes and no. The government holds a more secured position than the common shareholders, but the common shareholders from a legal standpoint still control the bank, assuming that there are no clauses written in to the preferred stock that give the government control, or worse conversion privileges into common stock.
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