SALVI!... forse...

[moorecat]

Follow-up on CNBC's report on Paulson’s RTC-type solution

As reported at 15:04, Treasury Secretary Paulson is working on some kind of RTC-type solution for credit crisis. CNBC reports Paulson is working to get some or all of the toxic waste off the balance sheets of the banks and brokerages and put in some type of RTC structure. Senator Schumer (D-NY) from New York is going to unveil his own kind of plan. Says the Treasury wants to do this thing in one bite and do it fast. However, the Treasury has not yet confirmed this plan at this point.

[moorecat]

15:19 Treasury's Paulson raised idea of RTC-style solution for financial crisis with Congress, according to source - Reuters

[c0ltran3]

Officials Weighing Plan to Ease Crisis, Schumer Says (Update1)

By Alison Vekshin

Sept. 18 (Bloomberg) -- U.S. Treasury and Federal Reserve officials are considering a ``permanent'' plan to address the financial crisis, said Senator Charles Schumer, who proposed a new agency to pump capital into troubled financial companies.

``The Federal Reserve and the Treasury are realizing that we need a more comprehensive solution,'' Schumer, a Democrat who chairs the congressional Joint Economic Committee, told reporters in Washington today. ``I've been talking to them about it.''

Schumer proposed an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages to make them more affordable. His remarks indicate momentum is building for some wider plan after the Fed and Treasury's takeovers of Fannie Mae, Freddie Mac and American International Group Inc. this month.

Discussions with the Treasury and Fed focus on ``trying to do something more permanent'' after the series of government interventions, the New York senator said. For the Fed, ``it's hard for them to do monetary policy, which is their primary task, and then run all these businesses,'' he said.

Fed officials announced an $85 billion takeover of AIG two days ago, hours after leaving their benchmark interest rate unchanged in a decision that rebuffed some investors' calls for a cut.

Fed Functions

``There is some preliminary discussions about how to sort of encapsulate and separate the two -- both to keep focus on monetary policy by the main Fed leaders, but also to prevent any conflicts of interest,'' Schumer said.

Lawmakers are weighing responses to a crisis that prompted Treasury Secretary Henry Paulson to seize Fannie and Freddie and caused the bankruptcy of Lehman Brothers Holdings Inc. in the past two weeks.

Schumer proposed a solution using the Great Depression-era Reconstruction Finance Corp. as a model.

``This step would allow federal and private efforts to modify loans, and avoid defaults and foreclosures, which have been at the root of the turmoil in U.S. financial markets,'' Schumer said in a statement today.

House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, this week proposed Congress create a federal entity to buy bad loans. Senator Hillary Clinton of New York, a former candidate for the Democratic nomination for president, proposed resurrecting a 1930s-era agency to stem foreclosures.

``We need a modern day Home Owners' Loan Corporation,'' Clinton said in remarks at the Senate today. ``There will not be any semblance of a normal or orderly market'' without ``quarantining'' the devalued loans outstanding, she said.

The HOLC bought up outstanding mortgage and issued new, more affordable loans that helped people stay in their homes, Clinton said.

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net

[moorecat]

Il mercato ci crede poco MS era tornata in pari e adesso riperde l'8%

[joelabrendola]

Originalmente inviato da moorecat

15:19 Treasury's Paulson raised idea of RTC-style solution for financial crisis with Congress, according to source - Reuters

toccati i maroni e non gufate ! (MS adesso è in positivo e GS ci sta per andare)

[joelabrendola]

Originalmente inviato da moorecat

Il mercato ci crede poco MS era tornata in pari e adesso riperde l'8%

è a + 8!

[moorecat]

15:23 Equity averages surge following report that Paulson is considering a Resolution Trust Corporation-type solution to the current credit issues

The Dow gained ~300 pts in the past half-hour and is now +354 on the day. SPX is +42 pts, Nasdaq +70. See 15:04, 15:09 and 15:13 comments for details.

15:23 U.S. Treasury declines to comment on whether Paulson talking to congress about RTC-style solution - Reuters

[index75]

ciao, quindi cosa creano una società veicolo pieno di schifezze bancarie lasciando il buono nei bilanci?

[moorecat]

si come hanno fatto per la crisi delle casse di risparmio 20 anni fa

[moorecat]

15:25 U.S. 2Y rate swap spread deflates as stocks surge on reports on talk of RTC-type solution - Reuters