Sunday, September 21, 2008

Treasury may bail out foreign banks too- WOW!


n a change from the original proposal sent to Capitol Hill, foreign-based banks with big U.S. operations could qualify for the Treasury Department’s mortgage bailout, according to the fine print of an administration statement Saturday night. Yeah, the devil is in the details- the FINE print! The pandora's box has been opened or should I say once the treasure chest is opened, expect the line to get longer! In light of this, if you believe 2/3 of Americans will get a tax cut under Obama, I got a bridge paved with gold to sell you!

The theory, according to a participant in the negotiations, is that if the goal is to solve a liquidity crisis, it makes no sense to exclude banks that do a lot of lending in the United States.

Treasury Secretary Henry Paulson confirmed the change on ABC's "This Week," telling George Stephanopoulos that coverage of foreign-based banks is "a distinction without a difference to the American people."

"If a financial institution has business operations in the United States, hires people in the United States, if they are clogged with illiquid assets, they have the same impact on the American people as any other institution," Paulson said.

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