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The article is about them becoming bank holding companies which preceded any talk of TARP. They became bank holding companies so they could get access to the d
by jim_greco 12y ago
The article is about them becoming bank holding companies which preceded any talk of TARP. They became bank holding companies so they could get access to the discount window and get different accounting treatments.
- bushido 12y agoYou're somewhat correct. They became a bank holding company on Sep 21st, 2008. It was a Sunday; CEOs of all financial companies worth noting were being held in Paulson's office to accept the conditions of TARP. The TARP funds followed over a month later circa Oct 28th, 2008. Can't speak for MS, but GS was not going bankrupt, they were the only one's who were making money (a substantial amount) and had already secured funding to buy up distressed assets.
- jim_greco 12y agoThe meeting with Paulson at the Treasury happened after TARP was signed into law (October 3). The book Too Big To Fail does a good job of summarizing the events.
- nvarsj 12y ago> Can't speak for MS, but GS was not going bankrupt, they were the only one's who were making money... That's a bit misleading. GS had a huge exposure via AIG. Many people in the industry think that GS was essentially bailed out via AIG.
- jim_greco 12y agoAbsolutely. The financial system is interlinked. If MS, AIG, Citi, etc. would have gone down then GS wouldn't have survived.