we are of the view that the United States needs to take strong decisive action to arrest the stress in our financial system through our new tarped Authority Treasury will purchase preferred stock in each of the banks represented in this room that stock will yield five percent the first five years nine percent after that we give you money you lend it out your bull unfreeze credit stabilize the banks restore confidence everyone will be better off with more capital in the system and that is why all nine of you will participate in the program some of us don't need any capital you all need capital you have no idea what the markets gonna look like in here neither do you I'm not one of you New York guys with your fancy products well why am i in this room talking about bailing you out the stronger banks will serve as cover for the weaker banks if just some of you take it the money is a signal that a bank is too weak to survive the market will devour how much are we talking about 125 billion Bank of America 15 billion Bank of New York Mellon 3 billion Citigroup 25 billion Goldman Sachs 10 billion JPMorgan 25 billion Merrill Lynch 10 billion Morgan Stanley 10 billion State Street 2 billion Wells Fargo 25 million what happened to buying toxic assets wasn't that the idea it's too slow they'll be dead before we sorted out so we're just handing the reins over to you deals actually pretty good you turn your nose up at this now and we have to rescue later the terms won't be nearly as attractive it's cheap capital it's not the worst idea in the world it is for those of us who already have capital we will be non-voting shareholders this will be a temporary measure what if we declined to be involved the chairman of the FDIC is sitting right there tomorrow you'll find out you're not as well capitalized as you think you are what kind of protections can you offer on changes for compensation policy I mean if the government is going to become a part owner does that mean that the government is going to dictate compensation yes give me about your bonus right now John I'm running a company if the Fed tells me I can't offer a competitive pay for talent you're gonna launch the biggest brain drain this country's ever seen is that the way you want to run the bank's until the money is repaid to the Treasury there will be some limitations on deductions and golden parachutes well there you go I don't really understand why there needs to be so much tension about this the country is facing the worst economy since the Great Depression if the financial system collapses it will take every one of you down give me the papers you can't just sign no no not without your boards my boards on 24-hour notice I think they'll go along with it and if they don't they'll fire me anyone else