EconomicCrisis.US

telegraph.co.uk

What was the plan?

Under the rescue package, the US administration was to commit 700 billion US dollars (£385 billion) of taxpayers’ money to buying up so-called “toxic debt” – potentially bad mortgages debt.

Removal of these troubled assets would have freed up the financial sector, which has been badly hit by the credit crunch.

In return, bank bosses would have seen a cap on pay deals and a ban on golden parachutes – generous payments paid to those leaving an institution. In addition banks would be forced to take out an insurance policy against further losses on mortgage debt.
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Sept. 29 (Bloomberg) — Fortis, the largest Belgian financial-services firm, received an 11.2 billion-euro ($16.3 billion) rescue from Belgium, the Netherlands and Luxembourg after investor confidence in the bank evaporated last week.

Belgium will buy 49 percent of Fortis’s Belgian banking unit for 4.7 billion euros, while the Netherlands will pay 4 billion euros for a similar stake in the Dutch banking business, the governments said in a statement late yesterday. Luxembourg will provide a 2.5 billion-euro loan convertible into 49 percent of Fortis’s banking division in that country.
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Sept. 29 (Bloomberg) — Bradford & Bingley Plc, the U.K.’s biggest lender to landlords, was seized by the government after the credit crisis shut off funding and competitors refused to buy mortgage loans that customers are struggling to repay.

Banco Santander SA, Spain’s biggest lender, will pay 612 million pounds ($1.1 billion) for Bradford & Bingley’s 197 branches and 20 billion pounds of deposits, the company said in a statement today. The Santander, Spain-based bank said it also got 18 billion pounds to insure those deposits.
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