Nov. 12 2008 Their is alot of pressure these days on the big banks in the U.S. . New numbers are emerging, it has been reported up to 1 million homes are in forclosure status, or set to be near forclosure status.
Since they have recieved federal funding, they have been urged to lend lend lend.
They are Citigroup, JP Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of New York Mellon, State Street and Merrill Lynch.
Smaller banks will share another 125 billion in the the cash-for-equity scheme, part of bigger $700 billion government plan.
The US government bank rescue plan, approved by Congress after much oposition, was designed to provide liquidity by buying up bad bank assets.
As part of the bail-out, the US Treasury aims to buy stakes in banks in return for capital.
One of the banks, State Street, said it had agreed to a scheme whereby the Treasury will invest 2 billion in preferred shares and also be given warrants to obtain additional stock.
Banks have been struggling since the middle of 2007 with rising mortgage defaults and a credit crisis that has virtually frozen inter-bank lending and severely restricted lending to consumers.
It will be some time to see if the bank bailout will succeed. Their is more speculation that more money might be need. Also other sectors are screaming to keep thier companies afloat, the car industry, steel workers, and insurance agencies are some to name a few.