Old 02-24-2009, 04:45 AM
Senior Member
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.
joenew61 is offline