by Bill McBride on 6/15/2009 09:29:00 PM
Monday, June 15, 2009
A few more details on the Extended Stay Bankruptcy (ht Brian):
And from the NY Times Dealbook (April 2008)
Under questioning from Robert Casey Jr., a Democratic Senator from Pennsylvania, Mr. Bernanke said Wednesday that the assets making up the Fed’s collateral were “entirely investment grade, entirely current and performing.” He said BlackRock, which the Fed has hired to manage the collateral, is “confident, or at least reasonably confident, that we would be able to recover the full amount.”
But, he was asked, what if BlackRock concludes that the collateral is worth far less than $30 billion? Can the Fed go back and ask for more?
Mr. Bernanke’s answer was brief: No, we cannot.
Posted by Bill McBride on 6/15/2009 09:29:00 PM