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In a nutshell how is the US government going to save the financial institutions on Wall Street?
Nirel
The US government is going to save the markets worldwide and the economies by means of the bailout and stimulus packages.
The purpose of these plans is to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets.
A key part of the proposal is the federal government's plan to buy up to US$700 billion of illiquid mortgage backed securities (MBS) with the intent to increase the liquidity of the secondary mortgage markets and reduce potential losses encountered by financial institutions owning the securities. The draft proposal of the plan was received favorably by investors in the stock market.
This plan can be described as a risky investment, as opposed to an expense. The MBS within the scope of the purchase program have rights to the cash flows from the underlying mortgages. As such, the initial outflow of government funds to purchase the MBS would be offset by ongoing cash inflows represented by the monthly mortgage payments. Further, the government eventually may be able to sell the assets, though whether at a gain or loss will be known only in future.
The Reasons for the Bailout Package:
1. To Stabilize the economy
2. Improve Liquidity
3. Improve Investor Confidence
4. Reduce the impact of the financial crisis on the US Economy and GDP.
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Street of US financial institutions?
wall street
What is the street of US financial institutions?
Wall st
Famous street in New York famous for its banks and its financial institutions?
wall street
What did wall street represent?
Wall Street is the street where financial services and institutions are located. It is called Wall Street because a Wall was built early in NY history to hold back the river and provide land.
Where is Wall Street located?
Wall Street is located in the Financial District of Lower Manhattan in New York City. It is a famous street known for being the historic home of the New York Stock Exchange and other financial institutions.
When was Financial Street Holding created?
Financial Street Holding was created in 1996.
Financial capital of America?
New York is considered by many as the financial capital of USA. It is home to Wall Street which has many top financial Institutions. It also houses New York Stock Exchange which is world's largest stock exchange by overall average daily trading volume.
What street is symbolically the financial center of Canada?
The name of the street that is the symbolic financial center of Canada is Bay Street. It is located in Downtown Toronto and is at the center of the Financial District. It succeeded St. James Street in Montreal in the 1970s.
How has the role of wall street changed in today's financial market?
how has the role of wall street changed today's financial market
What is the US financial capital located near the southern tip of Manhattan island in New York?
Wall Street is the financial capital.
Why does Republican Senator Jim Bunning call the US government's 700 billion dollar bailout 'financial socialism and un-American'?
The Financial Giants on Wall Street collapsed-so in an 'American' system- government should leave the financial institutions alone, or at least help on a small scale and let nature run its course.The American economic system is built on the principles of free trade, free enterprise (open competition), and minimal government involvement.By having the US government RESCUE the financial giants (which are private companies), the country goes against the 'All American' economic principles.On the other hand- This is NO ordinary crisis-the entire global economy is reliant on the strength and success of Wall streetAKA 'The Financial Capital of the World' These companies- Lehman Brothers Bear Stern Goldman Sachs, Fannie Mae, AIG etc.. are the rock solid base of Wall Street.So the President, Congress and Wall Street Analysts must decide... Where is the line drawn between 'Un-American financial socialism' and the impending failure/success of the current US and world economies?
Which financial institutions do not offer phone banking?
The Bank of New York Mellon, State Street Corp., the Royal Bank of Scotland, Northern Trust, BNP Paribas (Bank of the West), Mitsubishi UFJ Financial Group (Union Bank), and Allied Irish Banks do not offer phone banking.
