TITLE

Narrow Approach Needed for Rescue

AUTHOR(S)
Couto, Terry
PUB. DATE
September 2008
SOURCE
American Banker;9/26/2008, Vol. 173 Issue 187, p10
SOURCE TYPE
Trade Publication
DOC. TYPE
Editorial
ABSTRACT
The author discusses the government bailout plan written by Treasury Secretary Henry Paulson in September, 2008. He says the bailout is too broad and should not include all mortgage-related assets. By limiting which assets the government buys, it can restore liquidity to banks without putting too much risk on taxpayers. It is possible, if the government carefully chooses which assets it buys, that the bailout may be profitable over time.
ACCESSION #
34544981

Tags: EDITORIALS;  BAILOUTS (Finance);  MORTGAGES;  BANKING industry;  TAXATION;  LIQUIDITY (Economics);  ASSETS (Accounting);  ECONOMIC forecasting

 

Related Articles

  • Don't bank on your bonus. Horne, Fiona Russell // Builders Merchants Journal;Nov2008, p1 

    The author reflects on the issue concerning the bonus system in the banking industry in Great Britain. She points out that the issue of contractual obligations which most people tend to rely on them. She claims that the government's bail-out of the banks is massive and taxpayers are going to be...

  • Is The Worst Over? Regional Banking Sector Outlook Assessed.  // Emerging Markets Monitor;5/25/2009, Vol. 15 Issue 8, p18 

    The article presents an outlook for the banking sector in the Middle East for 2009. Some of the challenges facing Middle Eastern banks include overextended loan books and a collapsing housing market. Particular focus is given to the effects of the global credit crisis on Middle Eastern banks. It...

  • An investment policy for the small commercial bank. Holt, Eugene E. // Banking;Jun77, Vol. 69 Issue 6, p66 

    Discusses the implementation of investment policies in commercial banks. Information on the liquidity of bank assets; Role of the market in determining investment outlets; Elements of an investment policy.

  • Legislators and Treasury Ignoring Simpler Solution. Baker, James V.; Zweig, Phillip L. // American Banker;9/26/2008, Vol. 173 Issue 187, p10 

    The authors say that the government bailout plan created by U.S. Treasury Secretary Henry Paulson and Ben Bernanke, Chairman of the Federal Reserve Board, is too complicated. Instead, the government should put a one year government guarantee on all illiquid mortgage assets. This would restore...

  • Balance Sheet Adjustments during the 2008 Crisis. Zhiguo He; In Gu Khang; Krishnamurthy, Arvind // IMF Economic Review;2010, Vol. 58 Issue 1, p118 

    This paper measures how securitized assets, including mortgage-backed securities and other asset-backed securities, have shifted across financial institutions during this crisis and how the availability of financing has accommodated such shifts. Sectors dependent on repo financing�in...

  • We Need To Get Real to Heal. Macke, Chris // National Real Estate Investor;Apr2010, Vol. 52 Issue 3, p80 

    The article focuses on the extend-and-pretend attitude of banks and borrowers that created trouble to the commercial real estate industry in the U.S. It states that banks should not wait to make the condition better as it will only worsen the situation. It also notes that lenders should market...

  • Germans Back Bank Tax to Pay for Future Bailouts.  // American Banker;4/1/2010, Vol. 175 Issue 50, p16 

    The article states that Germany and France support the idea of a bank tax to cover the cost of future bailouts.

  • Cash-in-the-Market Pricing and Optimal Resolution of Bank Failures. Acharya, Viral V.; Yorulmazer, Tanju // Review of Financial Studies;Nov2008, Vol. 21 Issue 6, p2705 

    As the number of bank failures increases, the set of assets available for acquisition by surviving banks enlarges but the total liquidity available with surviving banks falls. This results in "cash-in-the-market" pricing for liquidation of banking assets. At a sufficiently large number of bank...

  • Investment, Liquidity, and Private Debt: The Case of REIT Credit Facilities. Campbell, Robert D.; Devos, Erik; Maxam, Clark L.; Spieler, Andrew C. // Journal of Real Estate Portfolio Management;Jul-Sep2008, Vol. 14 Issue 3, p195 

    This study examines Real Estate Investment Trusts (REITs) credit facilities with banks. Credit facilities allow flexibility, but may create agency problems due to the potential for misuse. The findings suggest that REITs enter credit facilities when expecting large investments. The net...

Share

Read the Article

Courtesy of your local library

Public Libraries Near You (See All)
Looking for a Different Library?

Other Topics