TARP vs. Non-TARP: Investing with Uncle Sam at a 60% Discount [View article]
As far as I know, government didn't guarantee Fanny Mae and Freddy Mac preferreds. Why it would be different for said banks? Let's say, bank participates in TARP, fails anyway. Government steps in, guarantees all deposits and all bonds issued by bank with exception of preferreds. Bank is solvent but common and preferreds are wiped out. Is there any clause in TARP preventing that?
TARP vs. Non-TARP: Investing with Uncle Sam at a 60% Discount [View article]