Charlie Gasparino reports that “firms like Blackrock (BLK), big money management firms” are “reaching out to European leaders calling for some way to support the banks in Europe right now.” Gasparino reports these firms are calling the plan an “enhanced liquidity fund” which very closely “resembles the initial TARP plan” in the United States. Excerpt from the report ; courtesy of Fox Business Network.
On how money management firms in the U.S. are reacting to economic woes in Europe:
“Firms like Blackrock, big money management firms, are hitting the panic button and reaching out to European leaders calling for some way to support the banks in Europe right now. Something they are calling an “enhanced liquidity fund” that resembles the initial TARP plan. People at Blackrock, including Larry Fink the CEO of Blackrock, are pushing for this enhanced liquidity fund. The issue is there are a lot of details that need to be worked out; European central bankers aren’t there yet. Major money managing firms are saying if they don’t do something like this, major U.S. investors worry they are going to have to nationalize these things soon because we have a run on the banks in Europe.”