Soros proposes bailout focus on equity

Oct. 1, 2008 at 2:43 PM

WASHINGTON, Oct. 1 (UPI) -- U.S. billionaire George Soros has proposed the government purchase equity, not illiquid securities, from troubled firms to fix the credit crisis.

Soros made his proposal in an article published Wednesday by the Financial Times.

"Instead of purchasing troubled assets, the bulk of the funds ought to be used to recapitalize the banking system," Soros wrote.

Soros also discussed the idea with presidential candidate Barack Obama, The Hill newspaper reported Wednesday.

"The two main principles are to inject more cash into the securities market and shore up home mortgages," said Rep. Jim Moran, D-Va.

"He doesn't think the government should be buying up toxic stock," Moran said.

In his article, Soros complained that "securities are hard to value, but the sellers know more about them than the buyer."

"In any auction process the Treasury would end up in the dregs," Soros wrote.

Related UPI Stories
Topics: George Soros
Latest Headlines
Trending Stories
TSU shooting: 1 dead, 1 wounded in third shooting this week at Houston campus
Listeria threat prompts Whole Foods cheese recall
Russia says missiles aimed at Syria did not land in Iran
Captive orca breeding banned at California's SeaWorld
Wrong drug used in Oklahoma execution