Follow WallStreetBlips on Twitter
A "New" Bailout Plan? Hardly.
Information Arbitrage —
... But now it's even worse. It seems as if the discussion among those in power has gone back to what we had during Bush II, injecting capital into sick institutions, yet on "tougher" terms than we had previously. Simply doing more of something that was flawed from the beginning isn't going to help solve the problem any better. Why the brainy President Obama or the equally brainy Larry Summers don't seem to get this is beyond me. From tonight's WSJ Online: ...
Bailout: More Equity Stakes?
Calculated Risk —
From the WSJ: Bailout Talks Turn to More Equity Stakes The Obama administration's financial-rescue plan is shaping up to include capital injections with tougher terms than the first round and an expansion of an existing Federal Reserve lending facility that could potentially buy up toxic assets ... Instead of buying preferred shares, as it did before, the government is discussing taking convertible preferred stakes that automatically convert into common shares in seven years. ... To deal with the toxic assets at the heart of the financial crisis, the ...
Bank desperation, mark-to-market edition
FT Alphaville —
... were not daunted. They have faith in Mr Geithner to find a way to banish the spectre of bad debts and writedowns, so freeing the banks to lend again as they did in the past. As noted above, the SEC and Treasury have already said they have no intention of suspending mark-to-market rules, which aims to value assets at their current market value. But, as Lewis reminds us, the idea of a suspension of those rules is not that far-fetched. In fact, the very notion of a US bad bank, the prospect of which is still being debated though it looks increasingly unlikely, involves a ...
The WSJ has some real morons on its payroll
self-evident —
Bailout Talks Turn to More Equity Stakes (via Calculated Risk)
This may be the worst article I have ever read in the WSJ.
To deal with the toxic assets at the heart of the financial crisis, the administration is considering expanding the Fed’s consumer-lending facility, known as the Term Asset-Backed-Securities Loan Facility… The Obama administration is discussing expanding the TALF to provide financing for other older assets, such as mortgage-backed securities.
Great! Um, no, wait a minute. The Fed is not ...
Geithner: We're Announcing Bank Plan Monday But We Have No Idea What It Will Be
Yahoo! Finance: Tech Ticker —
... , Feb. 6, 2009: The Obama administration has now veered away from a bad bank plan and is putting more weight on capital injections. Or the TALF. Or something. But the administration could still change its mind. Because it's only Friday, which means there are still 72 hours before Tim Geithner delivers the plan to the public. WSJ: The Obama administration's financial-rescue plan is shaping up to include capital injections with tougher terms than the first round and an expansion of an existing Federal Reserve lending facility that could potentially buy up toxic assets clogging ...
