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Taxpayer Funds
Latest Headlines
Latest Headlines
FDIC, no choice but to borrow?
From the trial balloon department: Regulators tell the New York Times that they are seriously considering a plan to borrow from healthy banks. It seems odd perhaps, but there's not a lot of money left from traditional sources. Special fees to keep the FDIC fund replenished are no longer enough
Cuomo keeps pressure high on bonus culture
Andrew Cuomo, the attorney general of New York, has painted the most detailed picture yet of the bonus practices on Wall Street. If you thought the bonus furor was dying down, guess again. According to his report, the nine largest U.S. banks paid $32.6 billion in bonuses in 2008, as they ran up mo
Anger at Goldman Sachs?
Is there any resentment simmering out in the public over Wall Street's return to big earnings and big bonuses? Bill O'Reilly, the Fox News commentator, likened Goldman Sachs bankers to pigs during a segment on his TV show. "You've got to make an example of the big boy," he said. "And this is t
AIG pays up for crisis management advice
Levick Strategic Communications is well known in Washington for its crisis management efforts on behalf of unpopular clients, such as the Catholic Church in its sex abuse scandal and a Dubai-based management company under fire for its contract to run U.S. ports. You can now add AIG to their client
Harsh spotlight on Goldman Sachs for AIG payments
It was big news when AIG finally released the list of CDS trade counterparties that it had paid off with taxpayer funds. At the top of the list was none other than Goldman Sachs, which received $13 billion more than any other firm. Goldman spokesman Michael DuVally told Reuters that it was hed
Government aims to quell nationalization fears
There's a lot riding on the upcoming stress tests, and if the move by Citi to approach the government about taking a large stake in the bank is any indication, we can expect some banks to fare poorly. Which will certainly prod the government into more direct intervention.
For now, Obama Admini
Pay cap too little, too late?
The Obama Administration, despite some apparent early dithering, ended up taking a hard line on executive pay at banks being bailed out with taxpayer funds. The $500,000 cap strikes many in the industry as draconian. But it does nothing--as of now, anyway--to change the compensation picture at ban
Should TARP banks keep on lobbying?
The New York Times reports that after taking in $45 billion in TARP funds, Bank of America has decided to stop lobbying the federal government, bowing to the PR risks. Citi, on the other hand, "is still fielding an army of Washington lobbyists working on a host of issues, including the bailout
What to do with Citi and Bank of America?
It would be one thing if we could look at Citi and Bank of America and say there's hope at the end of the tunnel. But as of right now, there's no light out there. If there were, most would assume its the proverbial on-rushing train. This is because Bank of America just took in nearly $140 bill
What will the terms be on coming Bank of America aid?
Bank of America seems to be in line for another injection of TARP funds. That would make it the second big bank--Citi was the first--to receive a second tranche of taxpayer funds. Bank of America took $25 billion in the first tranche; it's unclear how much more it will get. Citi has so far taken $
