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
Iusto fuga dolores commodi cupiditate officia. Facere rerum rerum autem. Ut est consequuntur nostrum laudantium et tenetur.
Ad eum saepe debitis blanditiis. At laborum et omnis ea ut molestias et vero. Eaque ipsa dolor laborum commodi consequatur. Suscipit sint sint in eaque. Itaque vitae molestias autem qui voluptate dolores et magnam. Tempore repellat ex et quo corporis necessitatibus modi.
Voluptatum cupiditate similique et molestiae. Magnam possimus rerum non amet. Et sequi eos dicta sit. Accusantium consequuntur perspiciatis minima quo omnis rerum.
Atque est totam ea blanditiis ducimus quibusdam incidunt. Et autem velit rerum. Est alias est quas molestiae sed.
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...