THE SAFE RETURN OF LIQUIDITY!!!
the bush administration will invest us$125b in nine of the largest us banks. the plan is to buy into the banks' preferred shares with warrants as sweeteners. none of the banks was given a choice on the amount and subjected to compensation restrictions as mandated by the us congress. another $125b will be used to recapitalize other financial institutions. in addition, the us government will guarantee all newly issued senior unsecured debt by banks for the next three years.
see below the fund allocation of the 9 banks:
25b - citibank
25b - jp morgan
25b - bank of america and merrill
20b - wells fargo
10b - morgan stanley
10b - goldman sachs
3b - state street
3b - bank of new york
so the good news is the 3 month dollar LIBOR is down 7 bps to 4.75%. now i am starting to wonder if the us banks have taken the whole america and the world ransom by hoarding liquidity and forcing the taxpayers to bail them out.
the bush administration will invest us$125b in nine of the largest us banks. the plan is to buy into the banks' preferred shares with warrants as sweeteners. none of the banks was given a choice on the amount and subjected to compensation restrictions as mandated by the us congress. another $125b will be used to recapitalize other financial institutions. in addition, the us government will guarantee all newly issued senior unsecured debt by banks for the next three years.
see below the fund allocation of the 9 banks:
25b - citibank
25b - jp morgan
25b - bank of america and merrill
20b - wells fargo
10b - morgan stanley
10b - goldman sachs
3b - state street
3b - bank of new york
so the good news is the 3 month dollar LIBOR is down 7 bps to 4.75%. now i am starting to wonder if the us banks have taken the whole america and the world ransom by hoarding liquidity and forcing the taxpayers to bail them out.
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