Banking System Will Need Another $500 Billion: Gross

RK

It's a bottomless pit we are getting into, a bandaid for a financial cancer that has metastasized!

September 25, 2008
CNBC

• Banking System Will Need Another $500 Billion: Gross The banking system needs another $500 billion to survive beyond the $700 billion rescue plan being contemplated by Congress, said Pimco founder Bill Gross. Gross said on CNBC that the government bailout plan will help free up bank balance sheets so they can start lending again, but will provide only about $50 billion in real capital to the system. "The plan goes far but it doesn't go far enough in terms of recapitalization," he said. "The banking system and the investment banking system in total really requires about $500 billion more.