Tuesday, May 13, 2008

Wall Street Tells Big Coal: Not So Fast

Original Post by Jeffrey Ball

"Investors like certainty -- and if they aren't going to get it from Washington, they'll try to impose it themselves.
That's one lesson from today's announcement, first reported in the WSJ, that three big Wall Street investment banks are rolling out a new set of environmental standards to tighten their financing requirements for coal-fired power plants in the U.S.

Citigroup Inc., J.P. Morgan Chase & Co., and Morgan Stanley say they expect a federal greenhouse-gas-emissions cap in the next few years that will make conventional coal-fired power plants riskier investments. Given that no one knows exactly what such a cap will look like, the banks say they’ll make some conservative assumptions as they screen power-plant financing requests starting now."

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