http://www.marketwatch.com/news/story/white-house-wont-seek-more/story.aspx?guid=%7BF2019EB0%2DD8F9%2D4B45%2D840A%2D36223746418E%7D&
White House: No requests for more bailout funds
My feeling is that it would take something extraordinary for Congress to approve more funds. So for all practical purposes, it looks like banks will either have to get by on exchange offers, asset sales or some other form of capital raising. Citigroup is reportedly exploring raising capital from private sources; exchange offers seem to be the method of choice. Beyond that, it's unclear what will be possible. Asset sales might be tough, if everyone aims to sell within the allotted six months. Selling securities will also be hard. In any case, we're likely to learn more starting May 7, when the details of the stress tests are made known--unless there's another delay.
Subscribe to:
Post Comments (Atom)
Congress should def. approve more funds.
ReplyDeleteEmily, This is a terrific summary. Do you agree that funds aren't needed? (Apparently Sabrina doesn't.) Why did you choose this article? What did you think of it? Of the Source?
ReplyDeleteGrade: 6/10
Sabrina, I'd like to know why you feel the way you do. Why use taxpayer money if the banks can raise it privately? (I don't know that I have an opinion, but I'd like to know the reason for yours.)
ReplyDeleteGrade: 1/2