While playing football at Dartmouth, Hank Paulson earned the nickname "The Hammer" for his relentlessness. No doubt this was part of the package that helped him rise to the top of Goldman Sachs before moving on to become the US Secretary of the Treasury. Now it seems that The Hammer has been using some pretty blunt tactics to get the latest $250 billion bank recapitalization plan approved by the banks, according to this account at the NYT.
If anyone has any suspicions about whether this bail-out package is a big conspiracy between old Wall St. buddies, this article makes it pretty clear that the government still wears the pants in this relationship.
I wonder how this meeting compares to the one that led major New York banks to prevent the complete implosion of Long Term Capital Management in 1998.
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The Week Ahead
Re-thinking the Fiscal Stimulus Approach