Former Fed governor Wayne Angell tells CNBC that the government should instill confidence in preferred shares to get investors to recapitalize troubled institutions. He went on to blame the Treasury for blowing up GSE preferreds for starting this panic and believes that the government should reverse its GSE preferred decision and invite investors to recapitalize FRE and FNM.
If li'l ole me could figure out that suspending GSE dividends was a very bad idea and Wayne Angell agrees, why didn't Paulson realize that last month? Because he and Congress are detached from the retail side of the markets.
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