Commercial banks and hedge funds have agreed to provide more than half of the $3.7 trillion in government bailout funds to help them recover from the economic downturn, according to the Financial Services Roundtable.
The other half of that $3 billion will be spent by the Treasury on bank recapitalizations and other bailouts.
The Treasury has pledged to buy as much as $1 trillion in Treasury securities in order to help commercial banks.
This will be done through a $700 billion bank recapitization fund, which is intended to help banks recover from a large bank bailout in the event of a bank default.
The banks involved in the roundtable are JPMorgan Chase, Citigroup, Wells Fargo, Barclays, Bank of America, and Morgan Stanley.
Bank of New York Mellon will not be part of the round table.
The roundtable is led by former Federal Reserve Chairman Ben Bernanke.
It will include the heads of the largest banks in the United States, and they have agreed that the $700-billion bank recapall is needed to help prevent another crisis.
The $700B bank recapisit ment would also be used to help the largest US banks, such as Bank of Nova Scotia, to recover from their largest financial crisis since the 2008-09 financial crisis.
In fact, the roundtables plan includes a provision for $400 billion of bank recapiv e funds for commercial banks and $300 billion for the hedge funds that will assist in bank recap.
The total size of the recapitalization fund is estimated to be $1.3 trillion.
The Roundtable says that the financial industry has a lot to recover.
The average commercial bank now has assets of about $3 trillion, according the Roundtable, and the $2 trillion bank bailout of 2008 helped to recover nearly half of this bank’s assets.
Bernanke has said that banks need more capital, but the roundte nt of money is coming from the government.
The money is going to commercial banks, which have been working with the Fed to get a large amount of government funds.
Bernake n has also been very critical of the hedge fund industry, saying they have taken too long to recover, and he has also said that the market is too volatile.
Bernay n also said in November that he believes that if commercial banks can make good on their commitments to the government, the market will rally.
The Federal Reserve is expected to make a decision on whether to issue more funds for the round t monday.
This news comes a week after the Federal Reserve’s top regulator, Charles Bernanke, announced that the Federal Open Market Committee (FOMC) would be deciding on whether or not to lift interest rates at its March meeting.