Monday, August 31, 2009

WSJ 8/31 "Raft of Deals for Failed Banks Puts US on Hook for Billions"

The WSJ today reports:
"To encourage banks to pick through the wreckage of their collapsed competitors, the FDIC has agreed to assume most of the risk on $80 billion in loans and other assets. The agency expects it will eventually have to cover $14 billion in future losses on deals cut so far. The initiative amounts to a subsidy for dozens of hand-picked banks."

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