Unlike in the case of American International Group, which had to surrender an 80 percent stake to the government in order to secure a massive loan, Treasury officials are considering taking non-controlling equity stakes in banks that accept the cash infusions, likely in the range of 10 or 15 percent, the sources said. Shareholders would lose less of their stake in the company under such a plan.
The new capital injection program could look like Warren Buffett's recent investments in General Electric and Goldman Sachs, according to an industry analyst.
Buffett invested several billion dollars in each company to help them weather economic difficulties. In return, he received shares of preferred stock. Those shares carry a high yield -- the equivalent of a premium on an insurance policy -- but they also allow the companies to buy out Buffett once they're back on solid ground.
-Washington Post
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