_March 11: The Federal Reserve announces a rescue package to provide up to $200 billion in loans to banks and investment houses and let them put up risky mortgage-backed securities as collateral.
_March 16: The Fed provides a $29 billion loan to JPMorgan Chase & Co. as part of its purchase of investment bank Bear Stearns.
_May 2: The Fed increases the size of its loans to banks and lets them put up less-secure collateral.
_July 11: Federal regulators seize Pasadena, Calif.-based IndyMac, costing the Federal Deposit Insurance Corp. billions to compensate deposit-holders.
_July 30: President Bush signs a housing bill including $300 billion in new loan authority for the government to back cheaper mortgages for troubled homeowners.
_Sept. 7: The Treasury takes over mortgage giants Fannie Mae and Freddie Mac, putting them into a conservatorship and pledging up to $200 billion to back their assets.
_Sept. 16: The Fed injects $85 billion into the failing American International Group, one of the world's largest insurance companies.
_Sept. 16: The Fed pumps $70 billion more into the nation's financial system to help ease credit stresses.
_Sept. 19: The Treasury temporarily guarantees money market funds against losses up to $50 billion.
_Sept. 29: The Fed makes an extra $330 billion available to other central banks, boosting to $620 billion the amount available to the Fed through currency "swap" arrangements, where dollars are traded for foreign currencies. It also triples to $225 billion the amount available for short-term loans to U.S. financial institutions.
_Oct. 3: President Bush signs the $700 billion economic bailout package. Treasury Secretary Henry Paulson says the money will be used to buy distressed mortgage-related securities from banks.
_Oct. 6: The Fed increases a short-term loan program, saying it is boosting short-term lending to banks to $150 billion. It says that by year's end, $900 billion in potential overall credit will be outstanding. It also says it will begin paying interest on reserves that banks keep with the Fed in hopes of coaxing banks into keeping more money on deposit at the central bank.
_Oct. 7: The Fed says it will start buying unsecured short-term debt, so-called "commercial paper," from companies, and says that up to $1.3 trillion of the debt may qualify for the program.
_Oct. 8: The Fed cuts its benchmark interest rate a half percentage point, to 1.5 percent. It follows a one-quarter point cut on April 30 and a three-quarter-point reduction on March 18.
_Oct. 8: The Fed agrees to lend AIG $37.8 billion more, bringing total to about $123 billion.
_Oct. 14: The Treasury says it will use $250 billion of the $700 billion bailout to inject capital into the banks, with $125 billion provided to nine of the largest: Bank of America Corp., which received $15 billion; Bank of New York Mellon Corp., $3 billion; Citigroup Inc., $25 billion; Goldman Sachs Group Inc., $10 billion; JPMorgan Chase & Co., $25 billion; Merrill Lynch & Co. Inc., $10 billion; Morgan Stanley, $10 billion; State Street Corp., $2 billion; and Wells Fargo & Co., $25 billion. The $10 billion for Merrill has been deferred until its purchase by Bank of America closes.
_Oct. 14: The FDIC says it will temporarily guarantee up to a total of $1.4 trillion in loans between banks.
_Oct. 21: The Fed says it will provide up to $540 billion in financing to provide liquidity for money market mutual funds.
_Oct. 29: The Fed cuts its benchmark interest rate to 1 percent, matching the low point reached in 2003. The rate hasn't been lower since 1958.
_Nov. 10: The Treasury and Fed replace the two previous loans provided to AIG with a new $150 billion aid package that includes an infusion of $40 billion from the government's bailout fund.
_Nov. 12: Paulson says the government will no longer buy distressed mortgage-related assets, formerly the centerpiece of the bailout, and instead will concentrate on injecting capital into banks.
_Nov. 17: Treasury says it has provided $33.6 billion in capital to another 21 banks, with the largest stake being $6.6 billion to Minneapolis, Minn.-based U.S. Bancorp. So far, the government has invested $158.6 billion in 30 banks.
_Nov. 23: The Treasury says it will invest another $20 billion in Citigroup Inc., on top of $25 billion provided Oct. 14. The Treasury, Fed and FDIC also pledge to backstop large losses Citigroup might absorb on $306 billion in real estate-related assets.
Wednesday, November 26, 2008
Gov't announces another $800B in bailout plans
WASHINGTON (AP) — The government's commitments to contain the financial crisis now approach $7 trillion.
That figure includes funds to guarantee certain corporate assets and debts, although those funds may never actually be spent. Still, the overall figure reflects the huge liabilities the government is taking on to battle the meltdown.
Among the government efforts announced Tuesday are plans to buy up to $600 billion in mortgage-related assets and up to $200 billion in loans for holders of securities backed by various types of consumer debt.
The new plans are the latest in a long list of government moves:
That figure includes funds to guarantee certain corporate assets and debts, although those funds may never actually be spent. Still, the overall figure reflects the huge liabilities the government is taking on to battle the meltdown.
Among the government efforts announced Tuesday are plans to buy up to $600 billion in mortgage-related assets and up to $200 billion in loans for holders of securities backed by various types of consumer debt.
The new plans are the latest in a long list of government moves:
GM and Ford shares jump on bailout outlook
DETROIT (Reuters) - Shares of General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) and Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) jumped on Wednesday after Deutsche Bank said chances have improved for the struggling automakers to receive a government bailout.
"There is growing concern about the risks to the U.S. economy that would be derived from inaction," Deutsche Bank analyst Rod Lache said in a research note.
"The proximity of these bailout hearings to the Citigroup (C.N: Quote, Profile, Research, Stock Buzz) bailout may have also tipped the scales somewhat," Lache said, referring to the massive government rescue of the bank announced Sunday.
M and Ford shares jump on bailout outlook
"There is growing concern about the risks to the U.S. economy that would be derived from inaction," Deutsche Bank analyst Rod Lache said in a research note.
"The proximity of these bailout hearings to the Citigroup (C.N: Quote, Profile, Research, Stock Buzz) bailout may have also tipped the scales somewhat," Lache said, referring to the massive government rescue of the bank announced Sunday.
M and Ford shares jump on bailout outlook
Thursday, November 20, 2008
Cities wrestle with economic bailout request
Associated Press Writer= SAN FRANCISCO (AP) - As three major U.S. cities asked the federal government for a slice of the $700 billion bailout plan, other cities were considering whether that was the right move for them.
Illustrating the complexity of the situation, San Jose Mayor Chuck Reed told The Associated Press early Friday he planned to request 2 percent or $14 billion of the federal government's bailout package to pay for mass transit improvements and expansion of the area's clean-technology businesses.
Hours later, the mayor issued a statement saying he would not ask for any of that money, unlike Philadelphia, Atlanta and Phoenix.
"I do not plan to ask Treasury Secretary Henry Paulson for TARP bailout funds for San Jose at this point in time," Reed said. "However, if TARP funds become available to cities, I will work to ensure that San Jose is allotted its fair share."
Reed said San Jose needed federal money to complete funding for the extension of the Bay Area Rapid Transit line, or BART, and to expand the area's clean technology businesses, which, he said, could produce 5,000 jobs. He also said the money could be used to fund "long-neglected infrastructure."
Illustrating the complexity of the situation, San Jose Mayor Chuck Reed told The Associated Press early Friday he planned to request 2 percent or $14 billion of the federal government's bailout package to pay for mass transit improvements and expansion of the area's clean-technology businesses.
Hours later, the mayor issued a statement saying he would not ask for any of that money, unlike Philadelphia, Atlanta and Phoenix.
"I do not plan to ask Treasury Secretary Henry Paulson for TARP bailout funds for San Jose at this point in time," Reed said. "However, if TARP funds become available to cities, I will work to ensure that San Jose is allotted its fair share."
Reed said San Jose needed federal money to complete funding for the extension of the Bay Area Rapid Transit line, or BART, and to expand the area's clean technology businesses, which, he said, could produce 5,000 jobs. He also said the money could be used to fund "long-neglected infrastructure."
Tuesday, November 18, 2008
Texas Capital applies for bailout funds
Texas Capital Bancshares Inc. says it is applying for the U.S. Department of Treasury’s Capital Purchase Program to secure $130 million in new capital.
In return, the government would receive senior preferred stock and warrants, Texas Capital (NASDAQ: TCBI) said in a statement Tuesday. The program is part of the federal government’s $70 billion bailout of the financial sector.
Thus far, Dallas-based Comerica Inc. (NYSE: CMA) has said it’s one of 20 large regional banks participating in the program. Comerica will receive $2.25 billion in new capital from the treasury department.
Meanwhile, Cullen/Frost Bankers Inc. (NYSE: CFR), which is based in San Antonio, has declined to participate in the bailout program.
Texas Capital applies for bailout funds
In return, the government would receive senior preferred stock and warrants, Texas Capital (NASDAQ: TCBI) said in a statement Tuesday. The program is part of the federal government’s $70 billion bailout of the financial sector.
Thus far, Dallas-based Comerica Inc. (NYSE: CMA) has said it’s one of 20 large regional banks participating in the program. Comerica will receive $2.25 billion in new capital from the treasury department.
Meanwhile, Cullen/Frost Bankers Inc. (NYSE: CFR), which is based in San Antonio, has declined to participate in the bailout program.
Texas Capital applies for bailout funds
Monday, November 17, 2008
Bailout cash drying up
It doesn't take long to burn through $350 billion, as the federal government has demonstrated over the past month.<
Only - a strange word to use when you're talking billions - about $60 billion is left of the original $350 billion first installment of the economic bailout money.
The government spent $250 billion for direct stock purchases from banks and $40 billion for a new loan six days ago to help shore up insurance giant American International Group.
Two days after injecting billions into AIG, Treasury Secretary Henry Paulson said officials are scrapping the original bailout plan and are trying to come up with ways to stabilize not only banks but also credit card, auto loans and other non-bank businesses.
The original plan was for the government to buy up toxic mortgages, thus making the private foolishness of lenders the taxpayers' problem.
That won't work, Paulson said. Things are deteriorating too fast, and the government needs to quickly lube the economy with tax dollars.
Bailout cash drying up
Only - a strange word to use when you're talking billions - about $60 billion is left of the original $350 billion first installment of the economic bailout money.
The government spent $250 billion for direct stock purchases from banks and $40 billion for a new loan six days ago to help shore up insurance giant American International Group.
Two days after injecting billions into AIG, Treasury Secretary Henry Paulson said officials are scrapping the original bailout plan and are trying to come up with ways to stabilize not only banks but also credit card, auto loans and other non-bank businesses.
The original plan was for the government to buy up toxic mortgages, thus making the private foolishness of lenders the taxpayers' problem.
That won't work, Paulson said. Things are deteriorating too fast, and the government needs to quickly lube the economy with tax dollars.
Bailout cash drying up
Sunday, November 16, 2008
Emergency Economic Stabilization Act
The US government recently passed a "Emergency Economic Stabilization Act" more popularly known as "Bailout".
Following is a statement from Secretary of the Treasury, Henry M. Paulson regarding the bailout:
The unfortunate impact of this bailout has been that every industry has been asking for thier piece of the bailout pie.
I have started this blog to better understand what this really means to the average American. Please feel free to post your thoughts.
Zak
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