Archive for February, 2009
Friday, February 27th, 2009
Rising bank failures forced the U.S. to raise premiums and implement a one-time fee in order to cover the cost of deposit insurance. There were rumours of changes to a debt guarantee program but only minor changes were announced. The Federal Deposit Insurance...(read more)
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Friday, February 27th, 2009
In a move geared at bringing private investment back to the financial system, the U.S. Treasury has agreed to match private conversions of preferred shares of Citigroup into common equity . Citigroup said it would offer to exchange up to $27.5 billion...(read more)
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Thursday, February 26th, 2009
The Treasury Department has moved at record speed to implement one piece of the new American Recovery and Reinvestment Act of 2009 Act aka the stimulus act. The Department and the Internal Revenue Service which will manage it announced on Wednesday that...(read more)
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Thursday, February 26th, 2009
The Federal Deposit Insurance Corporation ( FDIC ) announced the first quarterly loss in U.S. banks since 1990 in the fourth quarter. Although the FDIC does not name the banks, they said, in total, U.S. banks lost 26.2 billion in Q4. In 1990, losses totalled...(read more)
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Thursday, February 26th, 2009
Mortgage rates moved very little during the week ended February 26 from the averages of the previous week according to the results of the Primary Mortgage Market Survey released Thursday morning by Freddie Mac. The 30-year fixed-rate mortgage (FRM) increased...(read more)
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Thursday, February 26th, 2009
New home sales in the U.S. fell much more than expected in January, the Department of Commerce reported Thursday. Meanwhile, the median sale price fell to $201,100. New home sales fell to an annualized pace of 309k, a 10.2% decline from December, the...(read more)
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Wednesday, February 25th, 2009
In an effort to attract private capital back into the banking system, the Treasury plans to allow firms to introduce preferred shares that can be converted into common stock as part of its new Capital Assistance Program (CAP) . According to the Treasury...(read more)
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Wednesday, February 25th, 2009
The nationalization of banks is counterproductive to the health of the banking system and the overall economy, according to Fed Chairman Ben Bernanke . In testimony to the House Financial Services Committee on Wednesday, Bernanke echoed comments made...(read more)
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Wednesday, February 25th, 2009
Home sales dropped far below expectations on Wednesday, indicating the housing market downturn is far from over. Existing home sales fell 5.3% against expectations for a 1.1% increase. December's 6.5% rise was downwardly revised to +4.4%. Sales of...(read more)
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Wednesday, February 25th, 2009
The U.S. financial system will be repaired , confidence restored and the economy will return to prosperity, President Barack Obama pledged as he adopted a more upbeat tone in his first address to Congress on Tuesday evening. While the President acknowledged...(read more)
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