Voluntary is a relative concept these days. For the US Treasury to launch its latest salvo, the CPP, or Capital Purchase Programme, it required a coalition of willing banks. So it forcibly assembled one. Nine big US financial institutions will receive a total of $125bn for preferred stock and warrants granted to the government, to boost capital and facilitate fresh lending. Guarantees of debt issued by banks and additional protection for depositors should ease funding constraints. The participation of the leaders of the banking pack aims to help a further $125bn trickle down the food chain to the smaller fry.

Rather than ape the European model, the US has tweaked as appropriate for a nation that finds government ownership of private enterprise “objectionable”, to use Hank Paulson’s phrase. The result is a better deal, overall, for the banks and their shareholders. A coupon of just 5 per cent for the first five years amounts to a hand out in the current environment. It then jumps to 9 per cent, but the stock can be redeemed at any time for fresh tier one capital and is callable after three years. Shareholders are spared punitive dilution, while the restrictions on executive compensation are minimal.