Will the $700 billion bailout bill include foreign banks?

Discussion in 'Politics' started by KenH, Sep 22, 2008.

  1. KenH

    KenH
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    September 22, 2008

    Foreign Banks Hope Bailout Will Be Global

    By NELSON D. SCHWARTZ and CARTER DOUGHERTY

    PARIS — The financial crisis that began in the United States spread to many corners of the globe. Now, the American bailout looks as if it is going global, too, a move that could raise its cost and intensify scrutiny by Congress and critics.

    Foreign banks, which were initially excluded from the plan, lobbied successfully over the weekend to be able to sell the toxic American mortgage debt owned by their American units to the Treasury, getting the same treatment as United States banks.

    On Sunday, the Treasury secretary, Henry M. Paulson Jr., indicated in a series of appearances on morning talk shows that an original proposal introduced on Saturday had been widened. “It’s a distinction without a difference whether it’s a foreign or a U.S. one,” he said in an interview with Fox News.

    The prospect of being locked out of the bailout set off alarm bells among chief executives of overseas banks whose American affiliates also hold distressed mortgage-related assets, like Barclays and UBS. The original text provided access to the $700 billion bailout for any financial institution based in the United States.

    As the day wore on, some raised their concerns with the Treasury Department, arguing that foreign institutions were both big employers and major players in the American capital markets. By Saturday evening, the language had been changed to allow any financial institution “having significant operations” in the United States.

    - rest at www.nytimes.com/2008/09/22/business/22global.html?ref=business
     
    #1 KenH, Sep 22, 2008
    Last edited: Sep 22, 2008
  2. billwald

    billwald
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    Yes, just as the Freddie/Fannie bailout paid the Chinese govt. It will pay anyone BUT the American working class.
     
  3. LadyEagle

    LadyEagle
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    Get ready to have your currency changed. One world government.
     
  4. ReformedBaptist

    ReformedBaptist
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    HAHAHAHAHAHAA...as long as it still buys the groceries, I'm good. :laugh:
     

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