Chuck Baldwin for President 2012

[NYBob]

U.S. Govt. merges with Morgan Chase, Goldman Sachs -
Submitted by cpowell on Tue, 2008-10-14 01:14.
Section: Daily Dispatches

A mere technicality.

* * *

U.S. Treasury Said to Invest in Nine Major U.S. Banks -

By Robert Schmidt and Peter Cook
Bloomberg News
Monday, October 13, 2008

http://www.bloomberg.com/apps/news?pid=20601087&sid=adm0lax5u714&refer=h...

WASHINGTON -- The Bush administration will announce a plan
to rescue frozen credit markets that includes spending
about half of a total of $250 billion for preferred shares
of nine major banks, people briefed on the matter said.

The companies are Citigroup Inc., Wells Fargo & Co., JPMorgan
Chase & Co., Bank of America Corp., Goldman Sachs Group Inc.,
Morgan Stanley, State Street Corp., and Bank of New York
Mellon Corp., the people said. One of the people also
said Merrill Lynch & Co. will receive an investment.

The injections represent a new approach for Treasury Secretary
Henry Paulson's attempts to prevent a financial market
meltdown from sending the U.S. economy into a
prolonged recession.
He's following similar interventions by European leaders
and using broad powers Congress gave him earlier this
month to save the country's banking system.

"They've decided they need to do something drastic
and this is drastic," said Gerard Cassidy, a bank
analyst at RBC Capital Markets in Portland, Maine.

None of banks getting government money was given a choice
about it, said one of the people familiar with the plans.
All of the banks involved will have to submit to
compensation restrictions, said the person.

The government will also guarantee the banks' newly
issued senior unsecured debt, making it easier for
them to refinance their liabilities, the person said.

... Allocating Money

The Treasury plans to spend $25 billion each for stakes
in Citigroup and JPMorgan, people said.
Another $25 billion will be divided between Bank of America
and Merrill, which agreed last month to be acquired by
Bank of America.
Goldman and Morgan Stanley will each get $10 billion,
while State Street and Bank of New York will get
injections of about $3 billion each, people said.

Financial institutions are struggling to regain the confidence
of investors, counterparties and clients after bad loans
caused more than $635 billion of writedowns across
the industry.
Falling share prices have made it harder to raise
equity while surging borrowing costs have made
debt refinancing harder.

Paulson, Federal Reserve Chairman Ben S. Bernanke, and
FDIC Chairman Sheila Bair scheduled at 8:30 a.m. press
conference tomorrow in Washington.
Paulson's initiative follows an announcement in Europe
that France, Germany, Spain, the Netherlands, and
Austria committed $1.8 trillion to guarantee bank loans
and take stakes in lenders.

The press conference at Treasury will address "a series
of comprehensive actions to strengthen public confidence
in our financial institutions and restore functioning of
our credit markets," the department said in a
e-mailed statement.

Chief executive officers of major U.S. banks met with
Paulson to discuss the options for helping markets.
Stocks in the U.S. earlier today rallied the most in
seven decades, pushing the Standard & Poor's 500 Index
up 11.6 percent.

* * *

Join GATA here:

New Orleans Investment Conference
Thursday-Monday, November 13-18, 2008
New Orleans Marriott Hotel
http://www.NewOrleansConference.com

* * *

Help Keep GATA Going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code.
Its e-mail dispatches are free, and you can subscribe at http://www.gata.org/.
--

Former Fed chief says U.S. now in recession -

http://www.reuters.com/article/newsOne/idUSTRE49D2QB20081014
--

It all went wrong when we left gold standard -

http://www.gata.org/node/6775
--

what has our gov't done to dollar?
they didn't back it with a gold standard.

What Has Government Done to Our Money? -

http://mises.org/money/4s1.asp

history often repeat itself -

http://www.campaignforliberty.com/

http://www.johnmccain.com/palin.htm

http://www.888c.com/
imo. tia.

God Bless America