Thursday, December 23, 2010

U.S. $ 75,000,000,000 three lines to prevent the deterioration of the subprime mortgage crisis.

<P>: Http://finance. Hearing, which lasted nearly two months of difficult negotiations finally results. .November 9, U.S. time, the three major U.S. banks Bank of America, Citibank, Morgan Stanley agreed, agreed to spend at least 750 billion dollars, set up a special fund to help the market recover from the subprime crisis. .</ P> <P> The negotiations began in early October, when the U.S. Treasury urges banks to collaborate actively preparing for the "sub-debt funds." .In view of the plan was too complicated, was the bankers, market analysts in the negative. .</ P> <P> this end, the meeting to streamline the related projects, including "SIVs SIVs (StructuredInvestmentVehicle) To participate in the fund, more than 75% do not have to get the consent of the shareholders," and so on. .</ P> <P> fund organizers announced that the Fund could prevent the crisis continues to worsen, so that asset prices return to normal levels. .However, market analysts believe that this is impossible. .They said the role of the Fund's largest stock market may be to maintain a certain stability. .SIVs do not call for substantial new funds sell their securities, the Fund may sell securities buyers into SIVs, but now no investor will buy the devalued securities. .</ P> <P> U.S. Treasury Secretary Henry Paulson said in an interview, before the new fund will not like the market wants it, completely rescue SIVs, only long-term stability of the market played a role. .He said, do not expect to become the new savior of the special fund set up, but as long as a favorable long-term stability of the market measures are worth trying. .</ P> <P> present, the potential and impact of the new fund is still not clear, sub-debt situation has deteriorated. .Citigroup, Bear Stearns and other financial institutions suffered heavy losses. .Wall Street analysts believe that the crisis over the past twenty years ago, the collapse of hedge funds more serious incident. .Some large financial institutions are still eager to empty the hands of the securities, they do not seem to believe that this "assistance fund" to save the market crisis. .</ P>.

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