P.M. BRIEFING : Swiss Bank to Philadelphia’s Aid
A Swiss bank will guarantee part of the $375 million Philadelphia is seeking, making it the first institution to risk helping the financially troubled city.
Swiss Bank Corp. will back $50 million of the temporary loan notes the administration of Mayor W. Wilson Goode is trying to sell to raise cash, the Philadelphia Inquirer reported today.
City officials and a financial team headed by Merrill Lynch Capital Markets are trying to persuade at least two other banks to guarantee additional notes.
John Chamales, Swiss Bank first vice president, said the bank is prepared to issue a letter of credit for as much as $225 million if other banks subcontract for the other $175 million and assume some of the risk, the newspaper reported.
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