“First Prime Group” apparently said that stiff questioning of the US Government’s plan to buy up illiquid assets from beleaguered financial companies was to be expected.
US Treasury Secretary, Hank Paulson, US Fed Chairman Ben Bernanke and SEC Chairman, Christopher Cox faced tough questions from the US Senate on the viability of the plan and how it stood to affect the US taxpayer.
Sources close to “First Prime Group” reasoned that increasing the burgeoning US deficit to nigh on 70% of GDP was always likely to be challenged.
As the debate progressed, money market dollar rates continued to remain stubbornly high for 3 month money said the “First Prime Group” source.
The plan has a number of hurdles to overcome before the government can actually begin acquiring the assets. Consensus among “First Prime Group” commentators appears to be that senators are seeking reassurances from Mr. Paulson as to how much the taxpayer will ultimately be asked to commit. The Asian-based investment management firm said that the uncertainty fostered volatility which would present opportunities for the acquisition of oversold, blue-chip stock.
