Paulson's rescue plan cash looks just like debt but in drag

Bankers angling for a slurp at the US government's bailout trough should be careful what they wish for. Today's freshly minted capital might become tomorrow's debt.

How could that be? It turns out the accounting mandarins are looking to redefine the difference between equity and liabilities on corporate financial statements. And, based on what they've decided so far, there's a chance the government's bailout dough will have to be shown as debt on banks' balance sheets someday. That would make sense, too.

To date, Treasury Secretary Hank Paulson has allocated $250 billion for government investments in US banks. Those stakes mainly will take the form of preferred stock, which Paulson has said will count in the banks' Tier 1 regulatory capital. Nine large banks, including Citigroup Inc and Wells Fargo & Co, will get $125 billion. The rest would be spread among smaller financial institutions.