Invest where the government’s going, right? That’s what PIMCO is doing, buying bank debt, muni debt, GMAC debt.
Now Carlyle is doing the same. They’ve raised a $1 billion fund to buy bank stakes, according to Bloomberg. Apparently they wanted to raise $3 billion, but had to tone it back, so we’re not exactly talking a ringing endorsement, on the part of investors.
So here and there, you see a little money coming into the sector, though far from the money that was being thrown at it last Summer, when Sovereign Wealth Funds were coughing up billions for financial stakes that are worth far less.
Banks are getting whacked again today — Bob Pisani thinks it’s because for the next few days it’s “safe” to short them, though we’re not sure if that makes sense.
But whatever, the point is that Obama is commited to saving them, more or less, in their current form. Nationalization would be the administration’s last resort.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.