11/22/08

From the Wall Street Journal.

NEW YORK -- Wall Street firm Goldman Sachs Group Inc. said Friday that it will issue debt backed by the Federal Deposit Insurance Corp. under the new Temporary Liquidity Guarantee Program, or TLGP.

Market participants will watch the Goldman sale closely since it could be the first bank to sell debt under the FDIC program. It therefore could represent a benchmark for pricing this newly created asset class.

"Goldman Sachs intends to issue debt securities under the recently approved temporary liquidity guarantee program pending confirmation from the ratings agencies," said spokesman Michael Duvally.

Investors can start placing their orders on Monday, and the bank expects to price the debt -- which will carry a maturity date of no later than June 30, 2012 -- "early next week."

The FDIC on Friday finalized the terms applied to the guaranteed bank debt, agreeing to key changes including the lowering of fees applied to shorter-term debt.

The debt guarantee program, first announced Oct. 14, aims to free up funding for banks so they can make loans to businesses and consumers, and complements the Treasury Department's purchases of equity stakes in banks.

Comments (2)

11/22/08

time to go into debt

I'm making it up as I go along.

The WSO Advantage - Investment Banking

Financial Modeling Training

IB Templates, M&A, LBO, Valuation +

IB Interview Prep Pack

30,000+ sold & REAL questions.

Resume Help from Actual IB Pros

Land More IB Interviews.

Find Your Perfect IB Mentor

Realistic IB Mock Interviews.

11/24/08
Add a Comment
WallStreet Prep Master Financial Modeling