EU pledges $1.8 trillion (spoken in a Doctor Evil, from Austin Powers voice)
France, Germany, Spain, the Netherlands and Austria committed 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system.
In other news:
The Bush administration will announce a broad plan to rescue frozen credit markets that includes buying stakes in financial institutions and insuring some bank debt for three years, according to a person briefed on the proposal.
The government may spend as much as $250 billion on non- voting shares of banks and other financial companies, they said. Under the plan, the Federal Deposit Insurance Corp. would expand deposit insurance beyond the current limit of $250,000 and back newly issued senior bank debt.
Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben S. Bernanke and FDIC Chairman Sheila Bair scheduled at 8:30 a.m. press conference tomorrow in Washington.
Well if that don’t do it…
EU Nations Commit 1.3 Trillion Euros to Bank Bailouts
Gregory Viscusi, Bloomberg, October 13, 2008
U.S. Plans $250 Billion in Bank Equity
Robert Schmidt, Bloomberg, October 13, 2008