Tag:
bad bank
Latest Headlines
Latest Headlines
Bank of America's bad bank struggles
At Bank of America ( NYSE: BAC ), the newly appointed head of the bad bank is Terry Laughlin, who was tapped by CEO Brian Moynihan to deal with the massive liabilities stemming from the bank's troubled mortgage operations. The list of unenviable chores includes dealing with pressure from regulat
Bank of America creates a 'bad bank'
In its on-going efforts to clean up the mess stemming from the purchase of one-time mortgage giant Countrywide, Bank of America has created a "bad bank." Other banks, notably Citigroup, have also created such entities to deal with toxic assets. The new Bank of America unit, while not a separate le
Citi's bad bank sells out of student loan business
Citigroup (NYSE: C ) wants to focus on the core consumer banking market, and student loans apparently no longer fall under that umbrella.
Citigroup announced it will sell its student loan business and $32 billion in assets to Discover Financial Services and Sallie Mae. Some might have specu
More bailout detail coming soon
The god-awful reaction to Bailout 2.0 has prompted Treasury Secretary Tim Geithner to arrange for another release, this one with more details, reports CNBC . The critics were pretty savage in attacking the new secretary for what some thought was shocking lack of details.
The biggest issue r
Is the new TARP destined to fail?
The Financial Times puts it pretty succinctly: If the bank industry's only problem were illiquidity, the new TARP may be just the tonic. It can do a lot to breathe life into the markets for some toxic assets by making market, financing purchases or insuring banks against losses. The bad bank a
Lehman Bad Bank idea a bad one?
Lehman's announcement that it would spin off a bad bank was widely expected, and to many it seemed like a reasonable move. But not so fast. The issue of how the bad bank will be financed long-term has come up, of course. Breakingviews says until Lehman can spin off the bad bank, it assumes lia
What to make of Lehman's good bank/bad bank idea
The notion that Lehman Brothers might split itself into a bad bank--holding lots of troubled assets--and a good bank--the rest of Lehman--has been floating around for a while. Does the article in the New York Times suggest Lehman execs want a better gauge of how such an idea might be received?
Banks to follow UBS lead on bad loans
This week, UBS announced plans to place its troubled mortgage-related securities in a separate subsidiary--the idea being that it would eventually be able to find investors in the fund. Such deals effectively would take the assets of the balance sheet. The Financial Times reports that other t
