Fed Opens Yahoo Lending Facility (YLF)
When the Microsoft-Yahoo news came out last night, I suggested that "the Fed ought to kick in the additional $8 billion or so to make this happen."
Someone on the the Yahoo message boards of YHOO itself took the idea a step further:
"In response to recent events Federal Reserve Board voted unanimously to authorize the Federal Reserve Bank of New York to create Yahoo Lending Facility (YLF) to avoid significant stock market distruption and to support Yahoo! Inc shares. Yahoo! Inc and its authorized agents will be able to borrow from the facility to support stock price.
This facility will be available for business on Monday, May 5. It will be in place for at least six months and may be extended as conditions warrant. The interest rate charged on the credit will be the same as the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.
In addition, Yahoo! Inc shareholders who are unable to sell their shares at or above Friday, May 2 closing price, will be able to swap Yahoo! shares for the US Treasuries at the set price of $29.70 per share."
Fed opens Yahoo Lending Facility 3-May-08 11:58 pm
Hat tip: John Borchers
Ballmer, Yang Agree to See Other People http://bigpicture.typepad.com/comments/2008/05/ballmer-yang-ag.html
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Sad but true.
The Fed has created a no-fail environment for big banks and their investors, shielding them from any real world consequences for thier bad decisions, so why not all of corporate America?
Posted by: DownSouth | May 4, 2008 8:36:40 AM
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