Harry Guerrilla
DP Veteran
- Joined
- Dec 18, 2008
- Messages
- 28,951
- Reaction score
- 12,422
- Gender
- Male
- Political Leaning
- Libertarian
U.S. Eyes Two-Part Bailout for Banks - WSJ.com
Another bank bailout when the first one didn't do anything spectacular.
Your money hard at work. :roll:
The nation's top economic officials are discussing a new way to stabilize the financial system by buying a portion of banks' bad assets and offering guarantees against future losses on some of the remainder, in an effort to help banks while trying to mitigate the cost to taxpayers.
Under the concept being discussed, the government "bad bank," possibly run by the FDIC, would buy only assets banks have already marked down heavily. This could avoid crushing the value of other assets held by banks. It could also potentially sidestep the pricing dilemma because banks have already recognized the low value of the assets being purchased.
Mr. Baily and others have cautioned that tackling a financial regulatory overhaul in this environment, with so many other initiatives under way, will add uncertainty to the financial sector.
Another bank bailout when the first one didn't do anything spectacular.
Your money hard at work. :roll: