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Old 10-01-2008, 12:01 AM   #9
Zarathustra
Avalon Senior Member
 
Join Date: Sep 2008
Location: Eastern U.S.
Posts: 429
Default Re: someone familiar with Basel II comment on this article

Quote:
Originally Posted by QUESTINY View Post
The bailout money could go on the books to shore up the minimum level to appear like the banks are trying to comply with Basel II.

A trade of bad paper for cash would meet the minimum requirement test. Also, eat up the smaller banks, put their deposits on the books to show more assets.

Q,

If I understand you correctly, the 700 billion would prevent and international "outing" of the criminal banking by making them compliant. That does make sense, though why wait till the last minute? Of course they had to create the crisis "to be managed" in order to pull it off. I think there is something to this. It might also explain why the Fed lent out so much money the day after the vote failed.
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