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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