10/16/2008

The US government's economic-rescue plan triggered a rally in bank bonds that may make it easier for financial firms to refinance tens of billions of dollars of debt that will mature through the end of 2008. After Treasury Secretary Henry Paulson announced that the government will invest $250 billion in banks, bonds of Goldman Sachs, Citigroup and Morgan Stanley soared. "The banks right now effectively are under the government," said Mark Kiesel, executive vice president at Pacific Investment Management. The US "is trying to help refinancing needs in the banking sector".

Full Story:
Bloomberg

Related Summaries