Global Trust (a new global bank)
Dear President Obama,
Here is a proposal to solve the financial crisis by enlisting the trust of global export powerhouses and Japan. Create a bank, naming it “Global Trust.” The GT can be structured as follows:
$612 billion in equity
$3060 billion publicly issued debt
Equity Components:
$100 billion from the U.S. TARP funds
$100 billion from China
$100 billion from Japan
$312 billion private equity to be raised by IPO
Leverage: 1 (equity) to 5 (debt)
Majority ownership of equity is 51% by private stockholders
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