Thread: Foreign Banks to Profit From Bailout.

The final details of this rescue package have yet to be agreed but banks with "significant operations in the US" will qualify, according to the latest statement from the US Treasury. European banks that have lost -- or could lose -- money to the subprime fallout in the US could therefore pocket billions of euro from the rescue package.

According to the Treasury statement, others may benefit from the fund if "broader eligibility is necessary to effectively stabilise financial markets". Irish banks with exposure -- indirect or otherwise -- to such "distressed assets" could therefore be eligible for a dig-out.

"Many of the EU banks have significant operations in the US," said Stuart Draper of Dolmen Stockbrokers. "You would have to allow EU banks move their [distressed] assets on board the fund. So I'd suspect Irish banks would be allowed to, too."

http://www.independent.ie/business/i...e-1484602.html

More Info

What banks are eligible to take part?

The Treasury initially said that only US banks could sell distressed assets to the government, but after lobbying by foreign banks it now says that "participating financial institutions must have significant operations in the US", which would include many of the larger investment banks.

However, the Treasury Secretary would have the discretion to add other institutions if "broader eligibility is necessary to effectively stabilize financial markets".

Some banking organisations, notably in Germany, believe that all banks which hold US mortgage assets should be allowed to participate in the rescue deal.

http://news.bbc.co.uk/1/hi/business/7631321.stm

I want to know WHY congress has to RUSH a vote through before ASIAN MARKETS OPEN?! I keep hearing that over and over.