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Report: Obama Might Triple Bank Bailout

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January 29, 2009 – Comments (4)

US government officials seeking to revamp the financial bailout have discussed spending another $1 trillion to $2 trillion to help restore banks to health, the Wall Street Journal said, citing people familiar with the matter.

The paper said the Barack Obama administration could announce its plans within days but has not yet determined the final shape of its new proposal, and the exact details could change.

The administration is also seeking more effective ways to pump money into banks, and is considering buying common shares in the banks, according to the paper.

A Treasury spokeswoman told the paper that "while lots of options are on the table, there are no final decisions" on what she described as a "comprehensive plan." "The president has made it clear that he'll do whatever it takes to stabilize our financial system so that we can get credit flowing again to families and businesses," she told the paper.

The U.S. Treasury has already disbursed nearly $294 billion from the government $700 billion Troubled Asset Relief Program, or TARP to shore up the banking system and faltering U.S. automakers. Billions more have been pledged for particular uses.

A Treasury spokeswoman did not immediately respond to a Reuters email seeking comment that was sent after normal business hours.

The WSJ said another way being considered for the government to inject money into banks is the purchase of convertible bonds, in which the government would be paid interest now but have the option to get common equity later.

© 2009 Newsmax. All rights reserved.

4 Comments – Post Your Own

#1) On January 29, 2009 at 5:43 PM, semper77 (32.87) wrote:

Where is this $2 trillion going to come from? Time to nationalize the banks, IMHO.

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#2) On January 29, 2009 at 6:44 PM, Bays (30.45) wrote:

Wow....

It never ends.

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#3) On February 02, 2009 at 6:51 PM, chino88 (< 20) wrote:

Well, anyone heard of the SPP ? or Security and Prosperity Partnership of North America? Bush signed it back in 2005?. You all agree that Government intervention creates the problem in a Free trade based economy right? well, if not maybe it is time to start reading some Adam smith. 

 Anyways... i dont want to speculate, but unfortunately, today is all about speculations. Who will fall next? has the market bottomed out yet.. etc.. I just want to make an observation. Bush created the Sub-prime bubble with his program Housing for everyone back in 2002. then he signed the SPP agreement which means that North america will have a new currency, new boarders, and new regulations like the E.U (European Union). Do you guys think the bail-out's are just a way to destabilize the Dollar in order to gain a North American Union. Please do your research before arguing with me. 

 The bail-outs are just inflating the value of the dollar... when the dollar is so trashed, who is going to want it? Government intervention created the sub-prime loans, by unregulating the markets and creating loans for people who didnt qualify for a regular mortgage. BTW. Im not in favor of anybody, i just want the my future and the future of all the american people to be better, not worse. do some research into the SPP and the cause of the subprime loans. If you see some charts of the dollar you might see where im going for.... 

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#4) On February 02, 2009 at 8:31 PM, Bays (30.45) wrote:

I have watched a couple of videos on youtube about the "namero" and North American Union.   I don't think it'll ever happen in my life time so I'm not too concerned about it.  I'm sure you know a lot more on the topic than I do, as I haven't put forth the effort to do any research.

But I do believe the dollar will crash, even though other governments seem to be follwing suit and diluting their currencies as well.

As of right now, I am allocating a major portion of my funds in foreign equities -- mainly commodities and precious metals. This is money I do not need in the next 10 years so I will wait it out until new highs, which I'm sure we will see within a 10 year time period.  Commodities tend to do much better when financial and consumer equities are struggling.

 

 

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