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
Henry Paulson
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
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
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
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:
It’s been a very fluid situation as credit markets worldwide have gotten progressively worse. First $700b was passed by Congress for Treasury to hire a team to select and buy illiquid securities from banks. But that was quickly determined as being too slow to stop markets from freezing up entirely. So yesterday, we saw the
Two days after NYU Economics Professor Nouriel Roubini said markets are on the verge of meltdown, the IMF parroted the sentiment in their weekend meetings in Washington, DC—after four years of ignoring him. From the looks of this Reuters story, there was quite a few photo ops and generalized quotes from President Bush like: “I’m
Treasury Secretary Henry Paulson, now that he’s got his initial $250b approved and $450b more if needed (which it will be), has said that it’s not going to quick enough to handpick illiquid securities to buy from banks to help them recapitalize—as the Troubled Asset Relief Program (TARP) plan initially called for. With global markets
Last week after the bailout bill was passed, Treasury began hiring money managers to help handpick illiquid securities to buy out of bank’s portfolios. This week, Treasury may instead use the money to inject directly into banks: Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into
President Bush signed the bailout bill shortly after it was passed by the House today (it passed the Senate yesterday). Below is Treasury Secretary Henry Paulson’s statement today on the bailout bill. Feels Palin-like in its generalized tone, but that’s because he’s already doing the real work behind the scenes. Under the bill, Treasury has
The White House and leaders from the House and Senate have agreed to basic terms of Treasury’s proposed $700b financial sector bailout plan—the bill’s working title is The Emergency Economic Stabilization Act of 2008. The House will review the plan tomorrow (Monday) with the goal of voting on it and getting it to the Senate
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
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
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,
Fannie and Freddie are the backbone of the U.S. housing market, and they were just taken over by the government. Here's what you need to know.
Today the Treasury Department and newly created Federal Housing Finance Agency announced their plans to take over Fannie Mae and Freddie Mac in an effort to stabilize global financial and US housing markets. Below is the full statement from the Treasury Department as well as fact sheets outlining technical elements of their strategy. Also see
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