Markets jumped after the Treasury presented the fleshed-out details of its plan to buy troubled bank assets. The need for getting toxic assets off bank books has been around for quite some time, but has stalled because banks and investors couldn’t compromise on the price. Banks didn’t want to sell for less than 60 cents on the dollar, investors didn’t want to pay more than 30. The Treasury plan makes the two ends meet by providing $75-$100 billion in financing for buyers. For it to work, private investors will have to step up, but with the S&P leaping up 7.1% the street is betting they will and it will unclog the credit markets.
Markets Leap On Treasury's Troubled Asset Purchase Details
By Ben Popken March 23, 2009
- the world according to sigtarp Watchdog Says Treasury Dept. Once Again Overpaid GM Execs
- bad for your image Verizon Investors Worried Company’s Anti-Neutrality Stance Could Backfire
- dimon in the rough Report: Chase CEO Jamie Dimon Says No To Being Trump’s Treasury Secretary
- well that's settled Citi To Pay $7B To Settle Mortgage Investigation; Includes $2.5B In Consumer Relief
- they probably want that 'dislike' now Facebook Might Owe The IRS As Much As $5 Billion In Back Taxes