{"id":2093,"date":"2008-09-26T16:31:24","date_gmt":"2008-09-26T21:31:24","guid":{"rendered":"http:\/\/www.sequence-inc.com\/fraudfiles\/?p=2093"},"modified":"2011-08-19T21:42:03","modified_gmt":"2011-08-20T02:42:03","slug":"mark-cubans-idea-on-a-private-bailout-of-the-financial-sector","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/mark-cubans-idea-on-a-private-bailout-of-the-financial-sector\/","title":{"rendered":"Mark Cuban’s Idea On a Private Bailout of the Financial Sector"},"content":{"rendered":"

Mark Cuban has an idea:<\/a> Let’s scrap this government bailout of the financial sector and instead make it private. Create an Exchange Traded Fund (ETF) that buys the distressed securities these companies want to get rid of, as well as all warrants and shares of stock in the companies themselves. Investors choose whether or not to put their money into the fund and Mark is\u00a0 offering up $50 million of his own funds to invest in such a plan.<\/p>\n

This fund would then be traded on the open market like any other fund. If the purchased assets do well, the share price of the fund goes up, and vice versa.<\/p>\n

If enough capital couldn’t be raised in the immediate future from private investors, the U.S. Treasury makes up the difference. (They’re already planning on ponying up money anyway, so this just means they’d pony up less.) If the fund is successful, dividends would be paid and the U.S. Treasury would receive their proportionate share of the dividends.<\/p>\n

As our economy improves, institutional shareholders could keep their shares or opt to trade those shares for the assets of the fund. (i.e. If they felt the fund was poorly managed, they could trade out for some of the loans owned by the fund and manage those loans themselves.)<\/p>\n

This idea makes sense on so many levels:<\/p>\n