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US "may" back bank deposits as rescue system moves too slowly
BloggingStocks —
... According to The Wall Street Journal, "If the two moves come to fruition they would mark the government's most extensive intervention yet in the financial system." ...
US Considering Backing Bank Debt
naked capitalism —
... pieces (in this environment) of losses on the credit default swaps. Perhaps the short term debt backstop also intends to achieve that end, too, but it appears to have more immediate aims. It is horrific that we ever got in this position. But the authorities are in MASH mode, doing operations in the field trying to stabilize as many patients as possible. My big concern is whether anyone is doing triage, or merely running to work on the next bloody body they see. From the Wall Street Journal: The U.S. is weighing two dramatic steps to repair ailing ...
Snap news
FT Alphaville —
... The latest on Friday, US weighs backing bank debt - WSJ story . UK Competition Commission says there’s little competition between payment protection insurance provideres - ...
US "may" back bank deposits as rescue system moves too slowly
BloggingStocks —
... According to The Wall Street Journal, "If the two moves come to fruition they would mark the government's most extensive intervention yet in the financial system." ...
Financial Crisis: A Global Response?
Calculated Risk —
... argued that expecting an agreement on proposals like Mr. Brown’s would be “irrationally raising expectations.”... The White House confirmed that the Treasury Department was considering taking ownership positions in banks as part of its $700 billion rescue package. But officials said the idea was less developed than the plan to buy distressed assets from banks through “reverse auctions.” Less developed than the Paulson plan? That plan was never clearly explained. The WSJ suggests: U.S. Weighs Backing Bank Debt The U.S. is weighing two dramatic steps to repair ailing financial ...
Wall Street Breakfast: Must-Know News
SeekingAlpha.com: Home Page —
... Government considers next steps. As the financial crisis continues to worsen, the U.S. government is considering two dramatic steps to turn around, or at least slow, the damage: guaranteeing billions of dollars in bank debt and temporarily insuring all U.S. bank deposits. The moves, which would mark the government's most extensive intervention to date, are in discussion stages only. Full coverage for bank deposits would closely resemble plans recently unveiled by several European countries, including Germany and Ireland, and would likely extend to both corporate and ...
US May Overcome Bone-Headedness
Trader Daily Combined Feed —
... The move to back all U.S. bank deposits, which is only in the discussion stage, would be aimed at preventing a further exodus of cash from financial institutions, including small and regional banks, some of which are buckling under the strain of nervous customers. In recent weeks, customers have pulled money out of some healthy community banks under the assumption that the government will only insure all the depositors of larger banks in the event of a failure.
Continue reading on WSJ.com
What Have You Done for Me Lately?
Conglomerate —
... way to pump up bank capital. Now, it looks like more drastic measures are afoot.
Yesterday, central banks coordinated emergency interest rate cuts in an attempt to spur lending globally. The Treasury is now considering 3 aggressive moves to get bank lending back on track: 1. injecting capital directly into banks by buying equity stakes ;
2. guaranteeing interbank debt; and
3. extending deposit insurance to all bank deposits. The interbank debt ...
The Guarantee Plan
SeekingAlpha.com: Home Page —
... The bad news is that Hank Paulson seems to have run out of ideas. The good news is that, with no bright ideas of his own, he's turning to the bright ideas of Gordon Brown: first direct equity injections into troubled banks, and now a blanket government guarantee on bank debt, as well as insuring all deposits. ...
