Property Grunt

Monday, September 22, 2008

Confirmation of one piece of chatter

Remember this?
3. Federal Governement: Lender to the world

It is common knowledge that the Federal Government is being very generous with their lines of credit. But what is really f**ked up is that they are pretty much giving credit to everyone, including overseas banks.

It appears I was onto something.

Exclusive: Foreign banks may get help

In 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.

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.

Whatever dude. In the end America is footing the bill for this buffet regardless of who ate.