Shoulda Stuck With Plan, Hank!

Paulson's revised plan, to invest cash directly into banks in exchange for preferred shares and warrants to buy common shares, is producing mixed results.

The preferred shares pay a 5 percent dividend, but it can quickly be eroded by Treasury's promise to backstop hundreds of billions in eroding bank debt.

The warrants, which last for 10 years, are currently 31 percent under water for the 10 largest banks.