[E]very last damn thing, has been favorable to one of Wall Street's most entrenched interest groups: the bondholders.
The bondholders, the bondholders. It's always been about them [....] to make sure that the connected financial interests in his Rolodex don't lose their stakes, even in cases where they oh-so-richly deserve to.
This, by the way, is why the Obama administration ruled out the nationalization option for the banks from day one.
The cleanest option, and one we called for loudly in these pages – taking over the banks, throwing out current management, selling off the assets and starting over – was no-go because too many connected players would have taken a hit if their big bond positions went to zero.
[ Too much good stuff to quote, see the article and scroll down a couple of screens to the meat. ]
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