September 10, 2008
Serendipity
Posted by Usha Rodrigues

I made the risky move yesterday of 1) bringing up current events in Corporations class and 2) assigning the class to explain to me how the "bailout" worked. Risky because I had 2 senior colleagues visiting class today, and I certainly am no Frannie expert. The students came through beautifully this morning, explaining that the government received senior preferred stock in each company. Their homework had just introduced them to the concept of preferred stock, so it was a nice tie-in.

I know, I know, U.S. taxpayers are now on the hook for $200 billion. But, on the bright side, the students saw how preferred stock works in action!

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