MacroScope

Beverly Hills, 9021-owe?

Anyone up for a $395 million Rodeo Drive shopping spree? 

Apparently the latest recipient of U.S. Treasury cash is the City National Bank in posh Beverly Hills.  According to the Los Angeles Times, the bank is taking part in the government’s $250 billion cash infusion and made no promises about how it would use the $395 million it’s getting.

The government funding “clearly enhances our financial capacity to make acquisitions and … to lend to a larger degree,” Russell Goldsmith, chief executive of City National Corp, told the newspaper.

About 20 banks are expected to announce soon that they’re getting government cash in exchange for preferred shares. Some members of Congress have complained that Treasury is handing over the money with too few strings attached, and they want stricter rules on how the banks must use the money.

Dear G20, welcome to Washington

Thank you for visiting. Admission is free, but your generous donation would greatly help with our capital improvement projects such as bank bailouts, depositor guarantees and mortgage overhauls. We normally like to keep this an intimate gathering of just the Group of Seven, but given our current predicament, the more the merrier.

Depositors gather outside a bank in 1933.

D.C. bank

As global stock markets tanked once again, the pressure was mounting on the G7 to come up with a comprehensive plan to guide the economy past the credit crisis that threatens to trigger a global recession. The G7 meets on Friday, and the broader G20, which includes reserve-rich developing economies such as China and Russia, will convene on Saturday.

The buzz words are “coherent” and “coordinated” as world leaders acknowledge that they can no longer afford to focus on problems at home when everyone is feeling the pain.