Category
Bailout
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01.07.09Porn industry seeks bailoutFrom CNN: Another major American industry is asking for assistance as the global financial crisis continues: Hustler publisher Larry Flynt and Girls Gone Wild CEO Joe Francis said Wednesday they will request that Congress allocate $5 billion for a bailout of the adult entertainment industry. “The take here is that everyone and their mother want to be bailed out from the banks to the big three,” said Owen Moogan, spokesman for Larry Flynt. “The porn industry has been hurt by the downturn like everyone else and they are going to ask for the $5 billion. Is it the most serious thing in ...
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11.10.08Fannie Mae reports $29 Billion quarterly lossFrom Bloomberg: Fannie Mae posted a record quarterly loss as new Chief Executive Officer Herbert Allison slashed the value of the mortgage-finance provider's assets by at least $21.4 billion and said it may need to tap federal funds next year. In its first report since being seized by the U.S. government last month, Washington-based Fannie Mae said its third-quarter net loss was $29 billion, or $13 a share, from $1.4 billion, or $1.56, a year earlier. Allison, installed last month when the government took over Fannie and its smaller rival Freddie Mac, reduced most of Fannie's deferred tax credits, increased default estimates and ...
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11.10.08AIG gets second bailoutFrom CNN: Troubled insurer American International Group got a new, $152.5 billion deal from the federal government on Monday, as the Federal Reserve and Treasury Department made significant changes to the terms of the company's original bailout. The Fed announced that it will reduce AIG's original $85 billion bridge loan to $60 billion, and it will cut the interest rate by 5.5 percentage points. In addition, the Treasury will use its special authority under last month's $700 billion bailout law - the so-called Troubled Asset Relief Program - to purchase $40 billion in preferred stock. The new bailout was worked out between government officials ...
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10.08.08Fed shaves half a pointThe Federal Reserve, joining banks across the world, just announced that it was cutting interest rates by half a percent to 1.5 percent as the credit crunch, brought on by housing troubles, continues to roil worldwide. The Only Way To Shave, originally uploaded by Leviathor.
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09.29.08Bailout deniedThe House of Representatives rejected the proposed $700 billion bailout plan for the U.S. financial system. Bill supporters are attempting to salvage the package, and the Dow is down significantly. Do not enter, originally uploaded by DimitryB.
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09.29.08Don’t call it a failureFrom Reuters: Citigroup Inc will buy the banking operations of Wachovia Corp in a deal assisted by the Federal Deposit Insurance Corp, the FDIC said on Monday. Under the deal, struck in consultation with the Federal Reserve, the Treasury and President George W. Bush, depositors will be fully protected and no cost to the Deposit Insurance Fund is expected, the FDIC said. "Wachovia did not fail; rather, it is to be acquired by Citigroup Inc on an open bank basis with assistance from the FDIC," a statement on the FDIC's website said. It's a failure in all but name only, with Wachovia getting swallowed ...
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09.27.08Wachovia seeking buyerFrom Reuters: Wachovia Corp has begun early merger talks with several suitors, according to published reports, all of which spurned Washington Mutual Inc prior to that lender's seizure by the U.S. government. Wachovia, the sixth-largest U.S. bank by assets, began preliminary talks with Citigroup Inc, the New York Times said on Friday, citing people briefed on the matter. Meanwhile, the Wall Street Journal said Wachovia has entered preliminary merger talks with Citigroup, Banco Santander SA and Wells Fargo & Co, citing a person familiar with the situation. Bank executives are expected to be in New York this weekend for talks, it said. Wachovia's stock ...
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09.26.08WaMu becomes 13th bank to fail in 2008From The Seattle Times: Washington Mutual, just days ago the nation's biggest thrift and once its biggest mortgage lender, earned a final, notorious distinction Thursday: It became by far the biggest U.S. bank in history to fail. Seattle-based WaMu, laid low by its plunge into subprime mortgages and other less-than-sterling loans, was seized and closed by federal regulators Thursday afternoon. JPMorgan Chase, which has long coveted WaMu, bought all its deposits and banking assets for $1.9 billion. "This is the big one that everybody was worried about," said Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., in an evening conference call. "I ...
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09.21.08Goldman Sachs, Morgan Stanley to become bank holding companiesFrom Reuters: The Federal Reserve approved applications on Sunday from Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) to become bank holding companies, putting them directly under the regulatory supervision of the U.S. central bank, the latest step to restore calm to chaotic financial markets. To provide increased liquidity to the companies, the Fed agreed to lend to the firms' broker-dealer subsidiaries on the the same terms as the Fed discount window for banks and the central bank's Primary Dealer Credit Facility lending window for investment banks. Ted, things are afoot at the Circle-K. By ...
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09.21.08500 trades from a meltdownFrom the New York Post: The market was 500 trades away from Armageddon on Thursday, traders inside two large custodial banks tell The Post. Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level - a 22 percent decline! - while the clang of the opening bell was still echoing around the cavernous exchange floor. According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization ...