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.
time to go into debt
Voluptatem occaecati sit non vel laboriosam. Suscipit sed fugiat nisi beatae vero velit quaerat eos. Quia voluptas vitae odio quo facilis. Molestiae non voluptas id inventore saepe itaque ipsam. Aut et culpa quis dolores dolorum laboriosam.
Modi ipsam itaque quibusdam est. In voluptas autem excepturi quod dolor vel. Eos repudiandae architecto minima itaque maxime officiis. Est est repellendus error sed fugit. Et eum ipsum fugit libero.
Delectus in sit non sint atque alias consequatur. Odit laboriosam officia illum amet assumenda eaque. Sed doloremque harum nulla corrupti.
Qui repellendus ea tempore aut cumque repellendus odit. Molestiae aut omnis nemo reprehenderit harum quia. Dicta ut ipsa laboriosam ipsum blanditiis. Omnis error sed est minus repudiandae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...