Archive for September, 2008

Rescue Plan Finalized, $250 Billion in Funding to be Released Up Front

Monday, September 29th, 2008

Congressional lawmakers have reached agreement on the final details of a $700 billion U.S. financial market rescue package that will release $250 billion of funding immediately. The 106-page document, entitled the Emergency Economic Stabilization Act of 2008, calls for $700 billion of funding to be delivered in stages. Read ...

Paulson Says Wachovia Was Systemic Risk

Monday, September 29th, 2008

After the Federal Deposit Insurance Corporation (FDIC), Federal Reserve and U.S. Treasury facilitated the acquisition of Wachovia by Citigroup, U.S. Treasury Secretary Henry Paulson said the failure of Wachovia posed a systemic risk to the U.S. economy, and he praised the FDIC's handling of the situation. Read More ...

Citigroup to Acquire Wachovia Operations in Government Brokered Deal

Monday, September 29th, 2008

The U.S. government facilitated a takeover of Wachovia by Citigroup on Monday. The agreement is a complex deal that shares liabilities between the Federal Deposit Insurance Corporation (FDIC) and Citigroup while leaving Wachovia holding some of its assets. Read More Now

Private Mortgage Insurer Changes Business Policy

Friday, September 26th, 2008

MGIC Investment Corporation, one of the nation's largest issuers of private mortgage insurance, announced on Friday that it plans to stop accepting new business under one type of contract that it now considers to present an unacceptable risk. Starting the first of the year MGIC will no longer take new business ...

St. Louis Fed’ s Bullard Says Inflation and Growth Outlook Uncertain

Friday, September 26th, 2008

Speaking on the U.S. economic outlook in Tennessee, St. Louis Fed President James Bullard said his forecast on inflation and growth is uncertain in these times. "In times of magnified uncertainty, it may be unwise to attempt to guess the level of economic performance. That said, my sense is that ...

House Republicans Return to Negotiating Table

Friday, September 26th, 2008

Led by Minority Leader Roy Blunt, House Republicans have agreed to return to the negotiating table on Friday to salvage legislation geared at saving the financial system in the United States. The announcement came after a press conference from Senate Banking Committee Chairman Chris Dodd and Senate Majority Leader Harry ...

Lawmakers Return to Drawing Board on Financial Rescue Legislation

Friday, September 26th, 2008

After talks between Democrats and Republicans broke down on Thursday evening, lawmakers return to Capitol Hill for another round of discussion over the financial market rescue package. Read More Now

FDIC’s Bair Says Seizure of Washington Mutual Was Successful

Friday, September 26th, 2008

The largest bank failure in the history of the United States was successful and won't cost the taxpayers anything, said Federal Deposit Insurance Corp. Chairwoman Sheila Bair in interviews with CNBC and Bloomberg Television on Friday morning. after Washington Mutual was seized and subsequently sold to JPMorgan Chase for $1.9 ...

Credits Markets Sick - “Securitization Transmitted Disease”

Friday, September 26th, 2008

Federal Reserve Bank of Dallas President Richard Fisher said credit markets have contracted an STD - "securitization transmitted disease" - while speaking to an audience at the New York University Money Marketeers Club Thursday night. Read More Now

JPMorgan Chase Acquires Washington Mutual for $1.9 billion

Friday, September 26th, 2008

JPMorgan Chase has acquired Washington Mutual, a report from the company itself and the Federal Deposit Insurance Corporation (FDIC) said Thursday night. The FDIC called the transaction "simply a combination of two banks," and said... Read More Now