Equity Holders of Financials -- the Fodder

So the government is making money on Goldman Sachs (GS) and now even Citi (C) -- well we should remember: (a) the past screw ups in supervision, (b) messed up mark-to-market accounting rules that forced financials to raise capital at very low levels as a result of short-term "pricing" on assets in illiquid markets, and (c) rescues of financials with no regard to prior equity holders.

And the prior managements (and traders) did a pretty good job of betting the ranch -- making a lot of money in good times. But in the end the equity holders took the fall.

Some would say that that is the nature of equity. I would say the equity holders should use the legal system to get some compensation from those (the government and prior managements/traders) that "screwed them over."