Spread Bets on Bank Stocks

232091 Resource 133529 120646 120646 1242226740324 1242226740324 Controlled Timothy Geithner Proposes Failed Bank Fund

Large institutions would be partially responsible for bank failures

One of the things that has come out of the global financial crisis is a certain level of populist rage at the bank bailouts and the efforts made to avoid the failure of big banks. In order to put some of the cost of failure back on the large financial institutions, U.S. Treasury Secretary Timothy Geithner is planning to propose a risk fund that would be backed by big banks. The idea behind the risk fund is that big banks would fund it, and then it would be used to help cover bank losses and insure against failures. This way, the reasoning goes, there would be less burden on the taxpayers to cover losses incurred by banks. <a href="http://money.cnn.com/2009/05/13/news/economy/Geithner_banks.reut/index.htm?section=money_topstories" target="_blank" title="Timothy Giethner, bank fund, risk fund, spread betting, spread bets, bank failures, global financial crisis, Wall Street, U.S. stock market">CNN Money reports on Geithner's remarks about a bank fund</a>: <blockquote> "Our judgment is that it needs to be a separate solution where the burden of funding ... (is) borne by the large institutions in a level proportionate to their size," he told a meeting of community bankers. </blockquote> With the <a href="item/232089" target="_blank" title="Timothy Giethner, bank fund, risk fund, spread betting, spread bets, bank failures, global financial crisis, Wall Street, U.S. stock market">U.S. stock market down again today</a> -- in spite of insistence by Geithner that economic recovery is beginning -- it is little surprise that efforts are being made to propose some protection to the system. However, it remains to be seen whether or not Wall Street likes the idea of providing its own insurance against failure. 9 application/xml false bank failures bank fund global financial crisis risk fund spread bets spread betting Timothy Giethner U.S. stock market Wall Street Spread Bets on Bank Stocks Spread betting on the stock market http://www.gftuk.com/land/index.asp?aid=53 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.10) Gecko/2009042315 Firefox/3.0.10 GTB5 127.0.0.1 127.0.0.1 mmarquit 63.248.1.10 false true false false true 133529 blog blogsite/GFTUK/web