Looks like the markets are happy with the partial nationalization

[malaise]

of the banks in Europe. Bushco and Billy Krystol will have a hard time spinning this one.

http://news.bbc.co.uk/2/hi/business/7666570.stm
<snip>
to £37bn of taxpayer cash into Royal Bank of Scotland (RBS) Lloyds TSB and HBOS.

RBS is to raise £20bn, with chief executive Sir Fred Goodwin quitting the firm after his bank was forced to go to the Treasury for the bail-out.

A further £17bn will be put into HBOS and Lloyds TSB. Barclays intends to raise £6.5bn without government help.

The plans mean taxpayers will own about 60% of RBS and 40% of the merged Lloyds TSB and HBOS.

The Treasury investment in the banks forms part of the government bail-out announced last week.

Prime Minister Gordon Brown said the bail-out was: "unprecedented but essential for all of us", and would thaw frozen money markets.

The investments were assets and, "not just money being pumped in", he added, saying the government was: "not a permanent investor in UK banks".

"Its intention, over time, is to dispose of all the investments it is making as part of this scheme in an orderly way," Mr Brown said.

As a condition of the deal, the government has insisted that senior directors should get no cash bonuses this year, with future bonuses to be paid in the form of shares - a move aimed at encouraging management to take a more long-term approach.

[aquart]

1. Now THAT's an "ownership society."

Share payments only help with the long-term approach IF the capital gains tax rewards long hold and seriously punishes quick turnover.