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The Swindle Continues....
The Market Ticker — ... Bank of New York when it was headed by Mr. Geithner. The program, which was initially financed by $200 billion in Fed money and $20 billion in seed capital from the $700 billion bailout fund, lent money to investors to buy securities backed by student, auto and credit card loans, as well as loans guaranteed by the Small Business Administration. This is an ugly deal folks; its the "TALF" reincarnated.  The ugly part is found here in this WSJ article:  "Depending on the different types of ...

NY Times on Bank Bailout Plan
Calculated Risk — ... buyer, the Lone Star group of private equity funds, put down only one-quarter of the purchase price and had the right to walk away, forfeiting only the down payment, if it later turned out the securities were worth even less than it had agreed to pay. Thus Lone Star stands to receive the upside profit if the securities prove to be more valuable, but has only a limited downside risk if they do not. Liz Rappaport and Jon Hilsenrath at the WSJ had a story earlier: U.S. Weighs Fed Program to Loosen Lending Some hedge funds, which often use borrowed ...

Shuffling the deck chairs on the Titanic
Rolfe Winkler — ... Among his plan’s tactics is a “partnership” with private investors.  As the WSJ reported on Saturday: ...

Wall Street Journal: U.S. to Use Hedge Funds to Loosen Credit
Fund My Mutual Fund — Yet another story from the department of "I would not believe it unless I saw it with my own eyes" we continue down the path of unintended consequences and the ole run around. There must be some Puritan shame in admitting we are nationalizing our banks - we will do anything to prove otherwise. Such as backstopping the returns of hedge funds so that our shadow banking system (which was large part of what us got us into this mess) revives. All we are doing is using a middle man with these type of solutions - instead of directly supporting the banks with infusions and backstops ...