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New Aid Plans for Banks to Be Announced This Week



February 22, 2009 – Comments (8) | RELATED TICKERS: FAS , UYG

The Treasury Department and Federal Reserve are expected to announce details this week of new capital assistance measures “designed to avoid nationalization” of banks, including details of a previously announced “stress test” for institutions that likely will require some bigger firms to temporarily raise more capital, an administration official told FOX Business on Sunday.

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Let's hope this is what generates the (temporary) bull run in the financials that I've been expecting since FAS went below $14.

8 Comments – Post Your Own

#1) On February 22, 2009 at 4:52 PM, Seano67 (23.47) wrote:

***keeping fingers crossed***

I am fervently praying for a little help with my bank holdings. Go banks, go!

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#2) On February 22, 2009 at 8:57 PM, quitsmoking (< 20) wrote:

I'm buying KRE and UYG and keep a stop close by in case. Bound for a bounce?

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#3) On February 22, 2009 at 9:18 PM, uclayoda87 (28.50) wrote:

This sounds a little too much like the auto bailout plan.  Put off the inevitable for a few months and when all hope is lost, then say we gave it our best shot but it didn't work.  Current stock holders are wiped out.  The big banks get nationalized, restructured and hopefully returned to the private sector as multiple small banks.

We lose a few Billion dollars with the wait, but that is viewed as an acceptable cost for public relations, in this administration.

In the mean time, big bank stocks are traded with the hope of the greater fool theory.  I admit to trading BAC stock for short term profits, but this was gambling not investing.

My next gamble stock is Ford (F) since it didn't take any fed money and GM/Chrysler do not appear long for this world.  Ford has enough money to last to the Summer without taking any government "help".

Nouriel Roubini Says Nationalizing the Banks Is the Market ...

Feb 21, 2009 ... Dr. Doom says a takeover and resale is the market-friendly solution. ... is available in the following editions and languages: ... - 90k - Report this comment
#4) On February 22, 2009 at 9:35 PM, Ewok82 (28.53) wrote:

Do I trust the Feds to bailout the common stock holder?

No, unless big Democratic supporters are holding large positions in these banks.  The delay will likely buy them time to divest before the government takeover.  

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#5) On February 22, 2009 at 9:55 PM, musicmaniac599 (< 20) wrote:

I think we can all agree on the fact that the futures of Bank of America and Citi are uncertain. The fear of nationalization is driving down the prices of all bank stocks. Including others like Wells Fargo (WFC) that have more solid ballance sheets. As long as these fears persist the prices of most bank stocks will continue to decline.  HOWEVER, There is no doubt in my mind that companies like Well Fargo and JPM will survive this crisis and be great investments for the long run. WFC is trading under $11. I think I'm going to throw a small amount of my capital into this stock at early in the premarket on monday. Call me crazy but thats my game plan. If the market sways off these bottoms i don't want to miss an oppurtinity that i know is great for the long run. If the market doesn't swing I will solidify my position and by a strong company at an even better value. NO ONE KNOWS where the market is going tomorow until we here from Geithner. I'm about to snag a value stock. Not goin to lie im nervous though and I hope it's value doesn't drop alot in the week ahead. It takes guts to be an investor. 2 years down the line im gonna be glad i did this no matter what happens in the week ahead. Sorry for grammatical errors. I'm tired and just wanted to shout out to the fools real quick and get some feedback.

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#6) On February 22, 2009 at 10:12 PM, uclayoda87 (28.50) wrote:

I agree that WFC and JPM are better banks.  If the market tanks on monday, taking these banks down 20%, I would be tempted to buy WFC for a short term bounce.  But again this is more gambling than investing, since if it went up 10% after I bought it, I would sell and take my profits.

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#7) On February 22, 2009 at 10:15 PM, achilles101010 (< 20) wrote:

I am buying BAC and JPM pre-market. Its almost certain that BAC will get a similar if not better treatment from Fed than C. JPM like EFC is oversold and with certainity, it should go up. SO i am crossing my fingers for BAC and confident about JPM.

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#8) On February 22, 2009 at 10:44 PM, nirvana181 (< 20) wrote:

for more details

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