Monday, January 12, 2009

Morgan and Smith with Stanley and Barney

The more I think about it I find it disgusting that a company like Morgan Stanley is using $25 Billion in TARP money and $6.6 Billion in FDIC backed debt to finance its pending acquisition of Smith Barney. Why shoud taxpayer money be used to finance acquisitions? Morgan Stanley should be required to pay back TARP funds and buy back FDIC backed debt before it can make this acqusition. Taxpayer money should not be used to make a company that is too big to fail even bigger!

This acqusition should only be financed at arm's length debt or equity financing.

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