Bailout Stalled Out Negotiations are scheduled to resume at 8:30AM PST on the bailout plan in an attempt to reach an agreement. Democrats are insisting that a majority of Republicans support the proposal because Democrats do not want to campaign for the November election against opponents who say that the incumbent Democrats bailed out big
September 2008
JP Morgan Chase is the big winner in the market carnage.
Governor Arnold Schwarzenegger announced today he has signed legislation to protect homeowners and homebuyers in California and help establish a safe, more accountable lending environment. The legislation aims to increase accountability in the real estate market, improve transparency standards in order to prevent abusive lending practices and help Californians maintain homeownership in the aftermath of
Do you think that licensing is not an option for a loan originator? Think again, and view this. This SAFE licensing became part of HR 3221, signed by President Bush at the end of July. Remember that it is federal law, but states have some time to pass state legislation to license originators. (As best
Ring ring. “Hello?” “Hey Warren, this is Ben over at the Fed. You know how you already own 10% of Wells Fargo? Well, I have a little favor to ask…” Warren Buffett’s Berkshire Hathaway will invest $5 billion in Goldman Sachs, and shares of Goldman rose 6.5% following the announcement yesterday. Berkshire will buy $5
Will lenders soon be implementing fees for originators to lock a loan? This practice was almost standard decades ago, but got lost along the way. Some investors already charge mortgage bankers and brokers a fee, typically credited back at the time of purchase. This is especially prevalent with “lower tier” originators: those that have a
Morgan/Goldman Now Traditional Banks The last two remaining Wall Street investment banks gave up their relatively non-regulated status and are now commercial banks as the Federal Reserve approved Goldman Sachs and Morgan Stanley to become bank holding companies yesterday. The reason? Morgan and Goldman can now permanently borrow from the government, since banks can borrow
Leave it to the top dealmaking firms in the world to strike landmark deals that fundamentally change the financial world. The Fed approved applications from Goldman Sachs and Morgan Stanley to be come traditional banks, so they will sidestep any need to merge with existing banks and instead become competitors of the last big banks
Today and in the weeks ahead, market participants and policymakers will be consumed by Treasury’s plan to bring liquidity to the markets. But even Henry Paulson acknowledged in his proposal statement that financial regulation must be modernized. The Financial Times yesterday proposed some specific regulatory ideas: First, the independent investment bank, as a business model,
Paul Krugman, NY Times Op-Ed columnist and Princeton economics professor, said No Deal on the Treasury bailout proposal: As I posted earlier today, it seems all too likely that a “fair price” for mortgage-related assets will still leave much of the financial sector in trouble. And there’s nothing at all in the draft that says
Back in June, Portfolio.com released tournament brackets where users can vote on who killed the economy. Even though blame can’t rest with a single person or entity, this is a fun tool that’s still on their most-read list. Interestingly, former senator and current UBS investment banking executive Phil Gramm was not even on the list.
McCain keeps showing the country his misunderstanding of the economy, free markets and regulation. The latest comes as McCain describes his free-market, deregulated approach to healthcare, when he said that the healthcare system should function just like the banking environment he helped create over the past decade. Princeton economics professor Paul Krugman summed it up
On Friday afternoon, Treasury Secretary Henry Paulson briefly outlined his proposal for helping banks move through the credit crisis that began in summer 2007 and flared up significantly in the last 60 days. The proposal says that all Americans are at risk: The financial security of all Americans – their retirement savings, their home values,
Yesterday the Fed and Treasury departments proposed massive financial stability measures, including a short-selling ban on financial stocks, a plan to back money market funds for consumers and institutions, and a facility under which financial firms can unload debt they can’t otherwise move to the Fed and Treasury. This last component is a way of
FoxNews anchor Neil Cavuto interviewed his boss today, and there were three topic areas of particular interest in the wide-ranging interview. First, here’s what News Corp head Rupert Murdoch had to say about regulation and taxation regardless of who is the next president. Also see below for what Murdoch said about taxpayers and the massive
Last night, as I was taunting my dog with a hunk of cheddar cheese waved above her nose, the look in her eye reminded me that there is talk among loan agents of a mythical refi boom. Not your parent’s refi boom, or the 48 minute refi boom in January, but a real one. Of
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