With recent chrysler chapter 11 and now GM Shareholders Wipe out (few cents on the dollar) with GM 1-for-100 reverse stock split. So what Obama team is telling to financial institution is we don't care of your business model so you have to take the risk, So here is the whole story:
General Motors Corp. notified shareholders Tuesday it is planning a reverse stock split that would give them one share of new stock for every 100 shares they currently own.
The automaker said in a filing with the Securities and Exchange Commission that the deal would be part of an agreement with the Treasury Department in which the government would assume at least half of GM's debt in exchange for company shares. GM will send the information to shareholders currently holding a total of 610.5 million outstanding shares.
More here
Tuesday, May 5, 2009
More Banks Will Need Capital : WSJ
WSJ reporting 10 of the 19 banks are under water and needs more help. Now what ? does the market ever care about the current on going events. This stress test is really straining the market conditions and its getting fragile day by day and looks like a total economic collapse as we might see big players de-leveraging thier positions on low volume rally. It really amazes me how the main stream talking about the chasing the current markets and train has already left the station which not recomm garbage but also influence ppl to buy higher so that big players can wind thier portfolios. Remember any V shape recovery is not sustainable and eventually collapse @ the rate the economy is deteriorating.
Any way here's the whole story
The U.S. is expected to direct about 10 of the 19 banks undergoing government stress tests to boost their capital, according to several people familiar with the matter, a move that officials hope will quell fears about the solvency of the financial sector.
The exact number of banks affected remains under discussion. It could include Wells Fargo & Co., Bank of America, Citigroup Inc. and several regional banks. At one point, officials believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses, these people said, but that number has fallen in recent days.
More here http://online.wsj.com/article/SB124148189109785317.html
Any way here's the whole story
The U.S. is expected to direct about 10 of the 19 banks undergoing government stress tests to boost their capital, according to several people familiar with the matter, a move that officials hope will quell fears about the solvency of the financial sector.
The exact number of banks affected remains under discussion. It could include Wells Fargo & Co., Bank of America, Citigroup Inc. and several regional banks. At one point, officials believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses, these people said, but that number has fallen in recent days.
More here http://online.wsj.com/article/SB124148189109785317.html
Subscribe to:
Posts (Atom)