Fourteen regional U.S. banks, including SunTrust Banks Inc. and Capital One Financial Corp., accepted at least $31 billion in government cash as the Treasury rolled out the second half of its $250 billion package to shore up lenders and thaw frozen credit markets.Massive Interventions Continue
Participation
FIRST ROUND
Citgroup............$25 billion
Wells Fargo.........$25 billion
JPMorgan Chase......$25 billion
Bank of America.....$15 billion
Merrill Lynch.......$10 billion
Goldman Sachs.......$10 billion
Morgan Stanley......$10 billion
Bank of New York....$3.0 billion
State Street........$2.0 billion
TOTAL...............$125 billion
SECOND ROUND
PNC.................$7.7 billion
Capital One.........$3.6 billion
SunTrust............$3.5 billion
Regions Financial...$3.5 billion
Fifth Third.........$3.4 billion
Key.................$2.5 billion
Comerica............$2.25 billion
Northern Trust......$1.5 billion
Huntington..........$1.4 billion
First Horizon.......$866 million
City National.......$395 million
Valley National.....$330 million
Washington Federal..$230 million
First Niagara.......$186 million
TOTAL...............$31.36 billion
This new round of forced funding is bound to fail. The problem is excessive risky lending and the Treasury is attempting to force more lending. Please see NY Times Lending Conspiracy Madness for more on the foolish, counterproductive policies of the Fed and Treasury.
Meanwhile a Currency Crisis Meltdown in Europe, Japan, Australia is brewing. At least we are no longer hearing silly talk of containment.
Every day the crisis grows and every day the market's reaction to the interventionist measures by the central banks is diminished. Up next is another coordinated rate cut by the Fed and central banks. Those cuts cannot possibly solve a thing.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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