It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
The bill was passed on Friday afternoon, however, after the inclusion of $149bn of tax breaks and strict rules for participating banks.
But Wall Street analysts, believe the addition of so many terms to the bill might deter potential participants.
One of the least attractive elements is a section designed to curb executive pay at banks that participate in the bail-out package. These include limiting stock-related pay and banning 'golden parachutes' for executives.
'I think this hodge-podge of
'I think this hodge-podge of regulations and rules will be enough to put many [chief executives] off participating,' Caldwell said.
Sources close to Goldman Sachs and Merrill Lynch indicated the banks might choose not to participate in the bail-out as there is a growing view on Wall Street that the market may be bottoming out.
Analysts also believe that the mere presence of the government as buyer of last resort will be enough to get credit markets moving again, and that a large number of banks would not need to take part for the legislation to succeed.
Originally posted by burdman30ott6
In effect, they claim a form of bankruptcy on that individual debt alone, rather than on all their debt holdings. But then, like magic, *poof* it goes away. Once it has been written off their books it no longer can be used as a measuring stick of that institution's risky holdings. Very, very different from personal debt write offs in which your debts, even after being forgiven by bankruptcy, stay on your "books" (credit report) for at least 7, in many cases 10, years after you've written them off.