Submit a Story!
Votes
vote down flag
krugman.blogs.nytimes.com - 1/18/2009
More on the bad bank
—
OK, I've been doing more homework on the "bad" or "aggregator" bank idea that seems to be gaining ground. And here's what I think: it's mainly based on a false analogy. What people are thinking about, it's pretty clear, is the Resolution Trust Corporation, which cleaned up the savings and loan ...
Bank of America to receive additional $20 billion - International Herald Tribune
iht.com - 1/16/2009
Bank of America to receive additional $20 billion - International Herald Tribune
— iht.com — Kenneth Lewis gambled on bold acquisitions to build Bank of America into the nation's largest bank. But... the need for fresh government support to grapple with the newly revealed losses at Merrill Lynch, the brokerage firm he snapped up in a rapid-fire ... (more) Bank of America to receive additional $20 billion - ...
Comments vote down This Blog Is Full Of Crap found this 1/16/2009found this
krugman.blogs.nytimes.com - 1/18/2009
Bad bank bafflement
— krugman.blogs.nytimes.com — The idea of setting up a "bad bank" or "aggregator bank" to take over the financial system's... troubled assets seems to be gaining steam. So let me go on record as saying that I don't understand the proposal. It comes back to the original questions ... (more) Bad bank bafflement

Comments vote down Angry Bear found this 1/18/2009found this
online.wsj.com - 1/14/2009
Bank of America to Get Billions in U.S. Aid
— online.wsj.com — WASHINGTON -- The U.S. government has agreed to commit billions in additional aid to Bank of America... Corp. to help the nation's largest bank by assets close its acquisition of Merrill Lynch & Co., according to people familiar with the situation. ... (more) Bank of America to Get Billions in U.S. Aid

Comments vote down Calculated Risk found this 1/14/2009found this

Blog Reactions

Eschaton:  Super Shitpile

Calculated Risk:  Krugman: Wall Street Voodoo

TalkLeft:  An Argument For Timid Action On the Financial Crisis

Comments
Blog Reactions

Super Shitpile
Eschaton — It was a bad idea when Paulson proposed it about 15 different times, and it's a bad idea now.

Krugman: Wall Street Voodoo
Calculated Risk — Paul Krugman explains (once again) why "bad banks" won't work: Wall Street Voodoo Also see Krugman's blog today: More on the bad bank

An Argument For Timid Action On the Financial Crisis
TalkLeft — ... Alan Blinder, an economics professor, former Fed Vice Chairman and, as the New York Times, interestingly, chooses to point out at the end of his op-ed (will they do this for all guest pieces now?), someone who has "advised many Democratic politicians" (but never, presumably, any Republican politicians?)), writes in favor of a form of partial nationalization, the "good bank, bad bank" split (guess who gets the bad bank): ...

Related Content
The right way to create a good bank and a bad bank
woodwardhall.wordpress.com 2/23/2009 — Policymakers continue to struggle to figure out how to turn a troubled bank into a good bank and a bad bank. Under the good-bank/bad-bank policy, the good bank will operate free from concerns about troubled assets, because these assets will be held ...
"Bad Bank"? A Bad Idea
zacks.com 2/2/2009 — Posted Wed Jan 28, 11:32 am ET Posted By: Dirk van Dijk, CFA The country already has enough bad banks -- Bank of America ( BAC ) and Citigroup ( C ), for starters. OK, that's just snarky, but we do have an existing mechanism for a bad bank -- it is ...
A Really Bad Bank: Welfare as We Know It Now
tpmcafe.talkingpointsmemo.com 1/28/2009 — According to press accounts the Obama administration has decided to create a "bad bank" which would buy up much of the bad debt held by the banks. This is almost certainly a really bad idea, unless of course you happen to run a major bank or own lots ...
It’s Not the Assets That Make The Bad Bank Bad
yglesias.thinkprogress.org 3/11/2009 — The Wall Street Journal offers us the latest thinking on Citi: Regulators say the planning should be seen as a normal function of government during a financial crisis. One possible future step could involve creating a “bad bank” to ...
Bad/bad
corner.nationalreview.com 3/7/2009 — With Clinton we got high taxes (bad) but balanced budgets imposed by the spending caps in Congress (good). With Bush we got tax cuts (good) but deficits (bad). With Obama we get tax hikes (bad) and astronomical deficits (bad). Two notes: We are not ...
Bank Bailout and Rescue: Bad Bank 2.0 Now in Treasury Plan - Financials * US * News * Story
cnbc.com 2/9/2009 — The Obama Administration's new bank bailout plan is expected to include a new form of "bad bank" that would essentially combine public and private resources to take bad assets from banks' books, sources told CNBC. In addition, funding for the ...
Report: RBS to Split into Good Bank / Bad Bank
calculatedriskblog.com 2/23/2009 — From The Times: Radical revamp splits RBS in two The Royal Bank of Scotland (RBS) is to be split into a “good bank” and “bad bank” in a dramatic rescue restructuring in which assets worth several hundred billion pounds will be put up for sale.  ...
CNBC: 'Bad Bank' Plan Is Dropped
calculatedriskblog.com 2/9/2009 — From CNBC: 'Bad Bank' Is Dropped From Financial-Rescue Package The Obama administration’s wide-ranging plan to stabilize the financial system no longer includes creating a "bad bank" but will still contain measures to encourage private firms to buy ...
It's BAD All Over Again
oakcreekforum.blogspot.com 1/31/2009 — This last year went quickly in respect to this anniversary. Back then it was all new and what in the hell is this BAD all about as it seemed confusing. It was that day the real blogging started with me. There are two bloggers I will forever be ...
The Moral Hazard of the “Bad Bank”
ritholtz.com 1/29/2009 — I’ve been closely following the various (new & improved!) bailout plans for the big banks — from the modified TARP to the recapitalizations to the “bad bank” plan. I’ve noticed something I find a bit disturbing about ...