by Calculated Risk on 1/31/2009 01:44:00 PM
Saturday, January 31, 2009
The talks are said to have yielded agreement that the FDIC would run the bad bank, according to an source. ... Thursday could be the announcement day.There is more in the article, but not really anything new.
Meanwhile the WSJ is reporting: ECB Drawing Up ‘Bad Bank’ Guidelines
The European Central Bank is drawing up guidelines for European governments that are considering so-called “bad banks” to house banks’ toxic assets. The ECB is also working on guidelines for European governments that plan to guarantee toxic assets remaining on banks’ books, another form of bank bailout.It looks like the Bad Bank idea is moving forward ...
Both sets of guidelines are being drawn up with the European Commission. The ECB hopes the guidelines can help avoid competitive one-upmanship across the 27-nation European Union as nations seek to shore up struggling banks.
The ECB, which makes monetary policy for the 16 countries that share the euro currency, has no power to enforce any guidelines it develops.
Posted by Calculated Risk on 1/31/2009 01:44:00 PM