Can the federal government bail off two major U.K. banks, JPMorgan Chase & Co. and Citibank, which have been rocked by the so-called “London Whale” trading loss, by the end of the year?
The answer is yes.
Bloomberg News and Bloomberg Businessweek reported Friday that the Treasury Department is in discussions with the two institutions to extend the government’s bailout program for up to another three years.
The move could pave the way for another round of taxpayer-financed rescue programs for banks and other companies facing large losses due to the market’s volatility.
The U.KS. government’s current program expires at the end