George Soros, once known as the Man Who Broke the Bank of England, was in Washington to make clear that he doesn't think much of the bailout plan that Congress just rejected. Rather than an RTC-like plan, he suggested an alternative that would recapitalize banks in similar fashion using preferred shares (paying about 5 percent) and warrants. This is similar to the way Warren Buffett invested in Goldman Sachs, only if private money were not available would public funds be used. Banks would be able to leverage--not a great word here--that equity immediately. Soros coupled that aid proposal with direct aid for struggling individual mortgage holders. Among the benefits: the government would not have to analyze thousands of securities in an effort to find the right price--a tough task. We've noted that pricing issues loom as the biggest obstacle to success.

For more:
- here's the article from TheStreet.com

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