Micah Green, a partner in the firm's Washington office, appeared on PBS’ “Nightly Business Report” on Friday, February 27, 2009 discussing the government's ownership of Citigroup shares. PBS reported that American taxpayers now own 36 percent of the financial services giant, after the U.S. government changed the terms of its bailout loans. Reporter Stephanie Dhue asked Mr. Green, the former president and co-CEO of the Securities Industry and Financial Markets Association, about the terms of the loan.
Here's an interchange from the interview:
Stephanie Dhue: In the past when the Treasury injected capital into Citigroup, the government set the price. But by converting preferred shares to common shares today, it used the market to set the price. Attorney Micah Green says doing that may set a new standard.
Dhue: Green says the Citi action underscores the government's commitment to the nation's largest banks.
Green: Right now it's not just about a single institution and whether or not it's technically too big to fail, it's also about confidence in the system.
To read a transcript of the entire interview, click here.