The Deal

Citigroup and JPMorgan Chase were told they would each get $25 billion; Bank of America and Wells Fargo, $20 billion; Goldman Sachs and Morgan Stanley, $10 billion each, with Bank of New York and State Street each receiving $2 to 3 billion. Wells Fargo will get an additional $5 billion, reflecting its acquisition of Wachovia, and Bank of America receives the same for amount for its purchase of Merrill Lynch.

…The government will purchase perpetual preferred shares in all the
largest U.S. banking companies. The shares will not be dilutive to
current shareholders, a concern to banking…executives, because
perpetual preferred stock holders are paid a dividend, not a portion of
earnings. The capital injections are not voluntary, with Mr.
Paulson making it clear this was a one-time offer that everyone at the
meeting should accept.

Here is the story.  No matter what your point of view, you ought to be stunned by this development.

Addendum: Brad DeLong adds musical commentary.