By now everyone’s heard about the Fed’s quantitative rate easing plan. The announcement that the Fed will buy $500b in Fannie/Freddie bonds to drive yields down caused rates to drop by about .625%. But the Fed hasn’t even started purchasing the mortgage bonds yet because they need to raise money to do so. Now the [...]
Posts Tagged ‘Henry Paulson’
Rates Down on $600b Fed Investment in Mortgage Bonds, China Replaces Japan As Largest Holder of US Debt
Everyone is waiting to see what Barack Obama has got planned. We already know his economic plan. It’s designed to help small businesses that make under $250,000 a year…Like General Motors and Chrysler.
How To Track The $700b Bailout
The NY Times has an interactive chart to track the Treasury’s $700b TARP (Troubled Asset Relief Program). Almost half of funds have been committed by the Bush administration and they announced this week that the remaining funds would be allocated by the Obama administration. As of this morning, it looks like Hillary Clinton is Obama’s [...]
Congress to Grill Treasury/Fed/FDIC, States With Most/Least ‘Underwater’ Homes
If you’re a skilled mortgage professional, don’t ever let anyone tell you that you don’t have options in life! “Your time is now!”
Treasury Scraps Asset Purchases, Says $700b Best For Capitalizing Banks, Other Firms
The Treasury Department’s $700b Troubled Asset Relief (TARP) program was originally conceived as a plan to buy illiquid securities from financial firms to unclog their books and spur new business and consumer lending. Once TARP was approved, it was deemed more effective (from crisis mitigation and taxpayer protection standpoints) to use inject TARP funds directly [...]
White House to Banks: Make More Loans
The AP reported today that the White House is pressing banks who’ve received Treasury funds to stop hoarding it and start lending it. Under the Troubled Asset Relief Plan (TARP), Treasury has given out about $150b of $250b to about 24 banks—here’s the latest list of banks and amounts. So far not much of that [...]
List of Banks Who Have Received Treasury Funds As of October 27, 2008
Below is a summary from CNBC of the banks who have signed up for the Treasury’s $250b in re-capitalization plan that’s part of their Troubled Asset Relief Program. This is beyond the initial nine banks who got $125b to kick start the re-capitalization plan. The $700b TARP program was first designed to handpick illiquid MBS [...]
WeeklyBasis 10/14/08: Rates Up on Gov’t Rescue, Conforming Loans Expiring, Property Tax Notes
RATES & LOAN AMOUNTS Fixed and ARM rates for loans up to $729k are up roughly .5% in the past two weeks, erasing the .5% rate drop during September when Fannie & Freddie were taken over and the investment banking industry melted down. Rates on loans above $729k are consistent because they continue to be [...]
Roubini: 2-Yr Recession, 9% Unemployment, -15% More Home Prices, $3T in Losses
NYU Economist and founder of economic analysis firm RGE Monitor Nouriel Roubini told Bloomberg today that he sees the biggest US recession in 40 years that could last 12-24 months, bring unemployment to 9%, see another 15% decline in home prices, and an estimated $3 trillion in total bank losses—revised up from his previous $1-2 [...]
Treasury Injects $125b into 9 Banks, Fed To Fund Commercial Paper, FDIC to Guarantee Senior Bank Debt
Today Treasury Secretary Henry Paulson announced that about $125b of the $700b bank rescue package would be allocated to nine banks, which is a much more direct and aggressive recapitalization plan than the original approach of handpicking illiquid MBS to purchase from banks. Below are the banks involved and the amount they’re expected to receive:
