Wednesday, September 14, 2011

The lending to Solyndra LLC conundrum

If banks lend to Solyndra LLC, directly, that solar panel maker which after given a $535 million federal loan guarantee recently filed bankruptcy, they need to hold 8 percent in capital, but, if they lend to the US government so that it can relend those funds to Solyndra LLC, the banks need no capital at all… Is this really the way you want it to be? 

Mr. Regulator. Tear down this Basel wall! 

PS. A video explaining current regulatory madness it in an apolitical red and blue!