How to capitalise the banks and save financeBy George Soros
Published: October 12 2008 19:14
Now that Hank Paulson has recognised that the troubled asset relief programme is best used to recapitalise the banking system, it is important to spell out exactly how it should be done. Since it was not part of the Treasury secretary's original approach, there is a real danger that the scheme will not be properly structured and will not achieve its objective....
...The recapitalisation scheme outlined here would suffer from none of the difficulties of reverse auctions for hard-to-price securities. It would help restart the economy and likely produce returns for taxpayers comparable to my fund's...