Tag:
Bailout Plan
Latest Headlines
Latest Headlines
Big announcement coming today--or tomorrow?
The Treasury's Tim Geithner was scheduled to provide details of the new bank bailout plan today. But it may get pushed back to Tuesday to allow Geithner to work on the stimulus package. Geithner is currently scheduled to appear in front of the Senate Banking Committee Tuesday morning to discuss th
Why the bailout has not lifted confidence
We've seen some amazing government moves in the last few days: the bailout plan; the decision to directly buy short-term commercial paper from companies; the decision to provide yet more liquidity to prop up AIG's securities lending business. And yet, where is the shot of confidence that regulator
How much can customers take?
You can't blame the public--and politicians--for getting worked up about the previous bailout plan proposals. Taxpayers would have been on the hook for $700 billion. And while proponents of previous plans can argue that the ultimate beneficiaries are John and Jane Public, it feels more like a hand
Bailout plan passes Senate, moves to House
Is there any doubt that the bailout plan has become a political issue now? Substantively, the bailout plan that passed the Senate was really not much different from the one that was soundly rejected just days earlier by the House. But Senators had a few inducements that their House counterpart
Soros offers an alternative rescue plan
George Soros, once known as the Man Who Broke the Bank of England, was in Washington to make clear that he doesn't think much of the bailout plan that Congress just rejected. Rather than an RTC-like plan, he suggested an alternative that would recapitalize banks in similar fashion using preferred
How much more can the financial system take?
The credit markets are not quite seizing up, but there is a lot of nervousness evidence by a big move into short-term Treasuries. The costs of capital are certainly rising for Corporate America. Meanwhile, CDS spreads are widening again, and volatility is increasing. The system is not breaking jus
Wachovia in talks with Citigroup
There's been a lot of nervousness about Wachovia of late. The bank's CDS spreads have been rising, which is really pressuring its stock. With the ghost of Washington Mutual hovering near, there is a palpable sense that Wachovia needs a merger. Morgan Stanley seems to be off the table for now. But
Goldman, Morgan delay decisions on bonuses
The Financial Times reports that Goldman Sachs and Morgan Stanley have postponed meetings planned for October that would have determined the bonus pools. Everyone expects that bonus pools will be much lower. Goldman has compensation expenses that were down 32 percent for the first nine months.
Talks stall, fate of bailout unknown
At one point, it looked there would be an agreed-upon bailout plan. But then it all fell apart, leaving the fate of the plan up in the air. The combatants will try again today. At the White House, a surprise proposal was floated by John Boehner of Ohio that featured a smaller role for government.
Big unintended consequence: Worsening crisis?
For all the talk of the necessity of the Henry Paulson-proposed bailout plan, there are lots of questions about it, including this very big one: Will it actually worsen the crisis? It assumes, to some degree, that assets are being valued at something close to fair value on the books. But that may
