bank bailout: New Plan to Buy Bad Bank Debt
- 03/23/09 02:46 AM
The Feds have a new plan to buy the bad debt from banks. It looks like they want private investors to pay 6%, FDIC to take 84%, and 6% to come from the $700 Billion bailout funds and since this does not add up to 100% the Banks must be taking a 4% hit. From day 1 the Feds have been talking about buying the bad debt. The reason these loan are bad is very simple. The ones that borrowed the money stopped paying the loans back. If the loans are not being paid back then the holder of the loan … (2 comments)
The Feds have a new plan to buy the bad debt from banks. It looks like they want private investors to pay 6%, FDIC to take 84%, and 6% to come from the $700 Billion bailout funds and since this does not add up to 100% the Banks must be taking a 4% hit. From day 1 the Feds have been talking about buying the bad debt. The reason these loan are bad is very simple. The ones that borrowed the money stopped paying the loans back. If the loans are not being paid back then the holder of the loan … (2 comments)
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