 |
||||||
| Tuesday, February 9, 2010 |
Contact Us
|
 RSS
|
|||||
|
|
| |
|||
|
||||||
|
||||||
|
|
ANALYSIS
March 2, 2009
Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
March 2, 2009
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
March 2, 2009
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
March 2, 2009
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
|
|
|
|
September 18, 2008 3:27 PM ET
Congressman Barney Frank is once again pushing his idea of a Resolution Trust Corp. for banks—this time, to bankers. In a closed session this morning of the Financial Services Roundtable, Mr. Frank discussed his plan for disposing of toxic bank assets with the CEOs of the holders of those assets. Given the current banking environment, it may not have fallen on deaf ears. The setup, which Rep. Frank calls the “Good Bank/Bad Bank” approach, is like the one being discussed by many industry bigwigs, not to mention former Treasury Secretary Nicholas Brady and ex-Federal Reserve chairmen Paul Volcker and former comptroller Eugene Ludwig. Those three wrote in the Wall Street Journal that the government should form a temporary entity like the RTC, which was created in the late 1980s to clean up the Savings and Loan crisis. “A failure to act boldly in the fashion we are suggesting would cost the taxpayer and the country far more,” they wrote. Today, Congressman Frank again pointed out the merits of his plan. The “bad” bank would hold the impaired assets of the bank in trouble, and thereby the risk. The “good” bank would be allowed to take the unimpaired businesses back to the market, as soon as possible. According to one attendee who declined to be named because the meeting was closed to the press, the attendees were listening. “Some companies are right in the midst of the firestorm, and others are removed from it, but we all share the same perspective,” the source said. “This crisis has gotten to a point where if it’s not managed in an effective way, it’s going to cause additional harm to the economy.” The source added that “the liquidity interventions [such as last night’s] are temporary because they do not actually address the issue of who bears the risk.” Given the stock market's reaction to news that Senator Charles Schumer introduced a similar plan today, and that Treasury Secretary Henry Paulson is considering it, momentum and support are clearly building. The Dow Jones Industrial average was up about 400 points in late-afternoon trading, led by shares of banks such as Citigroup and J.P. Morgan Chase.
|
|
|
|
Latest News
• Reversal? Stanford advisers sue the SEC
March 5, 10:52 AM EST
• Third of companies not complying with new tax reporting rule
March 4, 4:25 PM EST
• Regulators aware of problems at First National for six years: audit
March 4, 3:31 PM EST
• Influential advisory group to look at fair-value, off-balance sheet accounting
March 4, 4:16 PM EST
• In a first, NY State hopes to sell bankrupt insurer
March 4, 3:59 PM EST
CRAIN'S BENEFITS OUTLOOK 2009
SPECIAL REPORT
MOST POPULAR
|
MORE ANALYSIS
Crain Financial Group:
InvestmentNews |
Pensions & Investments |
Workforce Management
Copyright ©2010 Crain Communications Inc
All rights reserved.
Privacy Policy |
Terms & Conditions