Washington quietly prepares a bank rescue – just in case
By Zachary Warmbrodt
Tucked inside Congress’ $2 trillion economic rescue package for America is sweeping authority for the government to come to the aid of the one industry that has insisted it doesn’t need a bailout: the big banks. Lenders that the government saved in the 2008 financial crisis have been touting the strength of their balance sheets heading into the coronavirus pandemic. … “The banks are in very good shape, but people are panicking anyway,” said Karen Petrou, a managing partner at Federal Financial Analytics who advises bank executives on policy issues. The move has divided the industry. Smaller banks, which heavily depend on deposits and are eager to show customers that their money is safe, have been lobbying policymakers to expand the federal guarantee of the banking system. The largest banks, which have nationwide operations and vast funding sources, don’t think it’s needed and fear it could be cast as a new bank bailout.
https://www.politico.com/news/2020/03/27/congress-coronavirus-bank-rescue-152501
