[STARWISE]

"According to one source who has been in contact with Treasury, the idea is to handle the purchases through a special unit within Treasury, rather than a separate agency like the one created for the S&L crisis, the Resolution Trust Corp.

Treasury, the source says, plans to buy the assets through "reverse auctions," with multiple sellers of a particular type of asset competing for the attention of a single buyer -- Treasury. But even that could leave open the danger of banks stuffing Treasury with assets that are shakier than they appear."

[STARWISE]

The Road Ahead

Goldman Sachs sees itself as one of the country’s best-run financial companies and its top brass probably shudders at the thought of having to answer to a U.S. regional bank or foreign bank that knows little of its business or culture. Due to the federal actions, Goldman probably will get to preserve its cherished independence. Its shares, which dipped as low as 85 on Thursday, rose 21.80 to 129.80 on Friday

http://online.barrons.com/article/SB122186342294858465.html?mod=ba_mp_view

~~~~

Guess that opinion all changed today.

[bruinbirdman]

"that could leave open the danger of banks stuffing Treasury with assets that are shakier than they appear"

That's why the price will be low and the sellers won't have much choice. Treasury already owns the assets of Freddy, Fanny, most of AIG.

When Treasury finishes with its regulations it will be able to name its price.

BTW the $700B+/- will be about 25% or less of the prospective underlying value. Ie., they will be buying about $3T of assets.

yitbos

[unspun]

I wonder why so many presume the Democrat Congress will happily pass the Bush plan?

Can anyone explain this naivete?

[Tempest]

Paulson is going to destryoy us. An unelected official with way too much power in his hand, gained by scaring the ignorant politicians and public at large.