asterisk2a + tarp   59

Money: The Too Big to Fail Edition by Panoply Media
Neil Irwin, author of The Alchemists: Three Central Bankers and a World on Fire, joins hosts Felix Salmon of Fusion, Cathy O’Neil of mathbabe.org, and Slate’s Moneybox columnist Jordan Weissmann. This week is all about Neel Kashkari of the Minneapolis Fed's new solution for our too-big-to-fail banks. //!& breaking up has complexity ... financial-industrial complex! //
too  big  to  bail  toobigtofail  TBTF  retail  banking  investment  banking  VAR  discounted  risk  systemicrisk  discounting  risk  BIS  centralbanks  liquidity  trap  GFC  financial  product  recovery  TARP  UK  USA  Europe  sovereign  debt  crisis  PIGS  economic  history  book  monopsony  oligopoly  oligopol  repo  interbank  lending  complexity  financial-industrial  complex  leverage  derivatives 
march 2016 by asterisk2a
From Ticker - S&P: QE is driving inequality between the generations
Quantitative easing (QE) stabilized the economy but also exacerbated wealth disparity between rich and poor, mainly by boosting financial asset prices and house prices. //&! [ LOW PAY MINIMUM WAGE JOB CREATION ] During the U.K.’s recent “jobs-rich, pay-poor” economic recovery, strong employment gains were accompanied by a further rise of already high wage dispersion and an ever-growing share of part-time employment in lower income groups. //&! In the context of the tight housing market, low interest rates and QE are among the drivers behind the widening wealth and income gap between younger and older generations and between those on the housing ladder and those not on it. //&! Inequality is damaging! // bit.ly/1QtauyZ - Bank of England's recovery policies have increased inequality, finds S&P [...] spending too much on rent, not able to save for deposit! //&! bit.ly/1PPyEYl &! ti.me/1sbBtrz
QE  inequality  reflate  reflation  distortion  recovery  job  creation  Service  Sector  Jobs  UK  USA  fiscal  policy  monetary  policy  monetary  stimulus  unconventional  monetary  policy  Fed  BOE  bank  bailout  zombie  banks  zombie  consumer  zombie  corporations  ZIRP  NIRP  TARP  TLTRO  LTRO  ECB  equity  bubble  asset  bubble  property  bubble  Housing  Crisis  Help  to  Buy  Scheme  Help  to  Save  Right  to  Buy  income  inequality  Gini  coefficient  social  mobility  income  mobility  budget  deficit  austerity  George  Osborne  income  distribution  poverty  trap  tax  credit  low  pay  low  income  squeezed  middle  class  Precariat  Zero  Hour  Contract  Contractor  part-time  Tories  nasty  party  homeless  homelessness  social  affordable  Conservative  Toff  Privileged  Establishment  Funding  discretionary  spending  disposable  income  household  debt  consumer  debt  credit  card  debt  student  loan  debt  student  loan  student  debt  debt  servitude  economic  history 
february 2016 by asterisk2a
What's holding back the world economy? | Business | The Guardian
[ continued financialisation of economy / faustian pact ] QE and low interest rates have disproportionately created wealth in the financial sector and inflated asset bubbles. It has done little for the real economy. The rules of the market need to be rewritten [...] dominant policies during the post-crisis period – fiscal retrenchment and quantitative easing (QE) by major central banks – have offered little support to stimulate household consumption, investment, and growth. On the contrary, they have tended to make matters worse. In the US, quantitative easing did not boost consumption and investment partly because most of the additional liquidity returned to central banks’ coffers in the form of excess reserves. [...] private investment did not grow [...] [ QE supported only financial sector and zombie banks and corporations, little to nothing went into the real economy for investment in western world ] [ which leads us to say we are still in a banking crisis per se ]
Joseph  Stiglitz  secular  stagnation  reflate  reflation  austerity  QE  ZIRP  NIRP  TARP  TLTRO  LTRO  zombie  banks  zombie  corporations  zombie  consumer  Richard  Koo  consumer  debt  household  debt  car  loan  credit  card  debt  Student  Bubble  loan  debt  disposable  income  discretionary  spending  squeezed  middle  class  Precariat  low  pay  low  income  wage  stagnation  income  growth  USA  UK  Europe  western  world  mortgage  market  NPL  debt  servitude  underinvestment  productive  investment  infrastructure  investment  economic  history  policy  folly  policy  error  corporate  welfare  tax  evasion  tax  avoidance  Gini  coefficient  income  distribution  social  mobility  income  mobility  poverty  trap  inequality  recovery  job  creation  Service  Sector  Jobs  distortion  financial  repression  speculative  bubbles  hunt  for  yield  asset  equity  VIX  volatility  Help  to  Buy  Scheme  monetary  policy  liquidity  trap  fiscal  policy  debtoverhang  deleveraging  balance  sheet  recession  consumer  confidence  business  confidence  business  investment  productivity  output  gap  aggregate  demand  income  redistribution  repo  monetary  transmission  mechanism  monetary  system  financial  market  GFC  banking  crisis  retail  banking  investment  banking  hot-money  Frontier  Markets  emerging  market  BRIC  rent-seeking  rentier  carbon  tax  economic  damage 
february 2016 by asterisk2a
The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad - YouTube
bankers are greedy & excess speculation, is the story. Fed controls short-term interest rate through interest rate setting/Fed meetings based on fundy of American economy, // NIRP (greenspan put) post dot.com, distorts market, decision makers decisions. housing bubble w help of NIRP after dot.com & home-ownership campaign in bush years (fiscal stimulus/subsidies) 2 push that "asset." Not "home" to live in. // banks got too big to fail (their balance sheet/lending book) as liabilities (toxic assets - real downside unknown (due to complexity and day to day changes during crisis years), like CDO/CDS etc) overtook book, overall, value. Banking being actually insolvent, but how insolvent one doesn't know. Thus bad bank idea. ACCOUNTING. // Paul Volker raised rates ... was able, because USA (private household, banks, corporates) were not in a balance sheet recession. Problem was endogenous. // Deregulation + Lax accounting contributed to GFC greatly, unable to value banks books.
GFC  economic  history  fractional  reserve  banking  financial  crisis  monetary  theory  systemicrisk  Greenspan-Put  NIRP  ZIRP  negative  real  interest  rate  interestrate  dot.com  reflation  reflate  balance  sheet  recession  deleveraging  debtoverhang  savings  rate  leverage  alangreenspan  greenspan  Ben  Bernanke  benbernanke  distortion  housing  market  accounting  too  big  to  jail  toobigtofail  TBTF  financial  market  financial  incentive  speculative  bubbles  speculative  speculation  hunt  for  yield  asset  allocation  asset  bubble  TARP  subprime  QE  stresstest  timgeithner  henrypaulson  economic  model  economic  damage  macroeconomic  policy  fiscal  policy  monetary  policy  history  paulvolcker  complexity  incomplete  information  business  confidence  consumer  confidence  confidence  banking  crisis  zombie  banks  mark-to-market  Janet  Yellen 
july 2015 by asterisk2a
If People Understood This One Thing, We Would Have Revolution Overnight - YouTube
Martin Luther King, Jr. was working towards a guaranteed basic income for all when he was killed. Wealth inequality, neoliberalism, the actions of the Federal Reserve, along with the greed and theft of the global elite have made the call for a guaranteed basic income for all even more urgent in 2014 than in the 1960s. [...] In his new book, The Economics of Revolution, DeGraw writes: “Having that much wealth consolidated within a mere 1% of the population, while a record number of people toil in poverty and debt, is a crime against humanity. For example, it would only cost 0.5% of the 1%’s wealth to eliminate poverty nationwide. Also consider that at least 40% of the 1%’s accounted for wealth is sitting idle. That’s an astonishing $13 trillion in wealth hoarded away, unused.” In this clip from the full 30-minute interview, DeGraw points out that the Federal Reserve is already printing money and giving it away to the financial elite.
Universal  Basic  Income  book  MLK  QE  bailout  TARP  USA  tax  code  tax  free  economic  history  Middle  Class  fairness  Super  Rich  1%  recovery  labour  market  labour  economics  happiness  index  incentive  work  life  balance  productivity  output  gap  participation  rate  GFC  POMO  wealth  distribution  poverty  policy  folly  policy  error  short-term  thinking  short-term  view  post-racial  America  Gini  coefficient  social  mobility  mobility  Future  of  neoliberal  neoliberalism  No  Representation  lobbyist  lobby  Lobbying  revolving  door  trickle-down  economics  crony  capitalism  toobigtofail  TBTF  too  big  to  jail  Justice  System  prison–industrial  complex  Bail  American  Dream  meritocracy  meritocratic  UK  equity  bubble  Wall  Street  consumer  confidence  business  confidence  corporate  state  shared  economic  interest  stakeholder  profit  maximisation  shareholder  value  Supply  and  Demand  Demand  and  Supply 
june 2015 by asterisk2a
Headline Numbers: How do you measure inequality? - BBC News
Research from the Institute for Policy Studies found that in 2014, bonuses paid to Wall Street employees had been double the total annual pay earned by all Americans who worked full-time at the federal minimum wage. I crunched the numbers and it turned out that the same was true for the UK. [...] The Office for National Statistics (ONS) had figures out on Wednesday based on the definition that people were in poverty if their income was below 60% of the median level (to find the median income, line up all the people in the country in order of income and take the middle one). It found that almost a third of the UK population had experienced poverty in at least one of the years between 2010 and 2013, which is very high by European standards. The OECD sets out a summary of what has happened to examples of all three of these measures. Across its 34 member countries, the Gini Coefficient rose gradually from 1996, fell slightly for the financial crisis and then resumed its upward path.
inequality  Gini  coefficient  income  inequality  income  growth  minimum  wage  Niedriglohnsektor  working  poor  precarious  work  Precariat  Zeitarbeit  Werkvertrag  Leiharbeit  Western  World  bonuses  bonus  compensation  package  1%  Super  Rich  squeezed  middle  class  working  class  Blue-collar  Worker  tax  code  taxation  tax  evasion  tax  avoidance  living  wage  standard  of  living  living  standard  disposable  income  discretionary  spending  UK  USA  GDP  Service  Sector  Jobs  Share  Economy  knowledge  knowledge  Mobile  Creatives  Mobile  Creative  Future  of  Industrial  Revolution  2.0  Software  Is  Eating  The  World  competition  differentiate  differentiation  borderless  flat  globalisation  globalization  capital  gains  Wall  Street  recovery  ZIRP  NIRP  QE  TARP  POMO  bailout  Career  Politicians  No  Representation  democracy  lobbyist  lobby  Lobbying  Workers  Union  presidency  barackobama  revolving  door  Washington  trust  confidence  poverty  child  poverty  poverty  in  old  age  food  poverty  income  distribution  income  mobility  income  redistribution  downward  mobility  social  mobility  austerity  welfare  welfare  state  Services  Public  Services  social  safety  net  IMF  OECD  GFC  social  tension  social  cohesion 
may 2015 by asterisk2a
Anleihekäufe führen nicht zu Inflation: Kolumne von Wolfgang Münchau - SPIEGEL ONLINE
Wenn Sie sich jetzt die Anleihenkäufe der englischen oder der japanischen Zentralbank anschauen, dann ist genau das passiert, was ich gerade beschrieben habe. In beiden Fällen wurde die Geldbasis massiv erhöht. Die Geldmenge bewegte sich nicht. Warum kaufen Zentralbanken die Wertpapiere dann überhaupt? Sie hoffen auf indirekte Effekte, die am Ende einer langen Kette vielleicht doch auf die Geldmenge wirken. [...] Nur leider hat das in Japan zwei Jahrzehnte lang nicht funktioniert. Und bei uns bislang auch nicht. Dafür gibt es verschiedene Gründe: [...] [... overarching trend; a flattening of the curves (of disparity) across the world concerning economic ?pillars?: work type (more advanced work in the supplychain in china & not just labour intensive stuff only. more & more added value done in BRIC, East Europe, ...) #labourmarket, #consumption, #demographics, #edu, savings, social safety net, western style democracy et al) ... fall of Iron Curtain was beginning of process Angleichung]
liquidity  trap  Japan  BOJ  Fed  BOE  ECB  quantitative-easing  QE  ZIRP  NIRP  OMT  TLTRO  LTRO  TARP  POMO  equity  bubble  asset  bubble  asset  allocation  hunt  for  yield  sovereign  debt  crisis  Richard  Koo  lost  decade  economic  history  monetary  transmission  mechanism  monetary  theory  business  confidence  consumer  confidence  zombie  consumer  zombie  banks  business  investment  trust  trustagent  fiscal  policy  austerity  IMF  BIS  centralbanks  confidence  deleveraging  debtoverhang  Super  Cycle  consumer  debt  debt  bubble  debt  monetization  debt  monetisation  debt  restructuring  haircut  monetary  policy  monetary  system  fiat  currency  deflation  deflationary  inflation  targeting  inflation  expectation  flat  world  globalization  globalisation  faultlines  infrastructure  investment  Structural  Impediments  imbalance  competitive  competitiveness  China  BRIC  Frontier  Markets  Developing  global  trade  macroeconomics  microeconomics  labour  market  labour  economics  21stcentury  Software  Is  Eating  The  algorithm  Robotics  automation  Niedriglohnsektor  lohndumping  Lohnzurückhaltung  disposable  income  Mobile  Creative  Mobile  Creatives 
november 2014 by asterisk2a
The Meteoric Acceleration in Series A Valuations
Series A valuations have doubled in 6 mo's, passing median Series B valuations from 10 yrs ago, acc to @ttunguz; the valuation explosion is likely due to capital tripling within the Seed fund raising market; if the trend continues & A replaces B, then Seed is the new A. ... // is it A: Maturity of New Economy business case. or B: hunt for yield. or C: increased occurrence of soft-landing/acquihire. or D: FOMO. or E: Increased cost for Start-ups to reach next business/product stage due to crowding and competition for talent. or F: All of the above. & http://pando.com/2014/11/03/neas-jon-sakoda-its-not-just-startups-vcs-would-be-wise-to-prepare-for-leaner-times/ & http://pando.com/2014/11/05/whats-beneath-the-recent-spike-in-series-a-valuations/
Silicon  Valley  hunt  for  yield  ZIRP  NIRP  QE  liquidity  trap  unintended  consequences  asset  bubble  speculative  bubbles  speculation  speculative  Wall  Street  Super  Rich  1%  distortion  asset  allocation  FOMO  2014  POMO  monetary  policy  TARP  Bailout  failure  acqui-hire  acquihire 
november 2014 by asterisk2a
Capitalism in Crisis Amid Slow Growth and Growing Inequality - SPIEGEL ONLINE
Six years after the Lehman disaster, the industrialized world is suffering from Japan Syndrome. Growth is minimal, another crash may be brewing and the gulf between rich and poor continues to widen. Can the global economy reinvent itself? [...] The buzzword is "inclusion" and it refers to a trait that Western industrialized nations seem to be on the verge of losing: the ability to allow as many layers of society as possible to benefit from economic advancement and participate in political life. & http://youtu.be/hPPBYNKmuWc?t=3m52s IMF talking about over 70% of EU banks are Zombie Banks.
Japan  economic  history  GFC  recovery  greatrecession  2014  secular  stagnation  faultlines  Abenomics  Richard  Koo  structural  imbalance  global  imbalances  Impediments  structural  deficit  liquidity  trap  globalisation  globalization  flat  world  Gini  coefficient  social  cohesion  income  inequality  income  mobility  social  mobility  downward  mobility  disposable  income  academia  academics  fiscal  policy  monetary  policy  debtoverhang  Debt  Super  Cycle  sovereign  crisis  deleveraging  NPL  zombie  banks  business  investment  consumer  confidence  business  confidence  balance  sheet  recession  creditcrunch  Wall  Street  crony  capitalism  excess  Bailout  toobigtofail  TBTF  too  big  to  jail  unintended  consequences  equity  bubble  asset  bubble  ZIRP  NIRP  QE  OMT  TARP  LTRO  TLTRO  Funding  for  Lending  Scheme  IMF  BIS  Europe  UK  USA 
october 2014 by asterisk2a
Fed Loans to Big Banks Undisclosed to Congress - Video - Bloomberg
Nov. 29 (Bloomberg) -- Bloomberg's Bob Ivry reports on how bankers failed to mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. He speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
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TermAuctionFacility  TAF  discountwindow  FED  bailout  bank  2008  TARP  GFC  transparency  disclosure  history 
november 2011 by asterisk2a
Secret Fed Loans Helped Banks Net $13 Billion - Bloomberg
A fresh narrative of the financial crisis of 2007 to 2009 emerges from 29,000 pages of Fed documents obtained under the Freedom of Information Act and central bank records of more than 21,000 transactions. While Fed officials say that almost all of the loans were repaid and there have been no losses, details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.

$7.77 Trillion
The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he “wasn’t aware of the magnitude.” It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP. Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.
Fed  bailout  finance  banks  bank  2008  GFC  meltdown  TARP  disclosure  transparency  trust  TAF  TermAuctionFacility  discountwindow  FinancialCrisisInquiryCommission  history  Dodd-Frank  moralhazard  Glass-Steagall  toobigtofail  systemicrisk 
november 2011 by asterisk2a
Barofsky: TARP Did Not Make Money For US Taxpayers - YouTube
confidence in system, banks
supposed to resume lending - it failed there.
but deleveraging played a role in that q as well. when nobody wants to borrow, nobody does borrow - see richard koo
TARP  barofsky  Dodd-Frank  toobigtofail 
october 2011 by asterisk2a
Morgan Stanley at Brink Got $107B From Fed - Bloomberg
http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending

Hedge Funds pulled money out ... out of banks who facilitate their trades.
Prime brokers facilitate short trades, the sale of borrowed stock in the hope of buying it back later at a lower price. They also make margin loans to finance stock purchases. In exchange, hedge funds usually keep their cash and stock in accounts at the prime-brokerage companies.

“So if clients pulled their money out, the view was that money had not been lent out, so the cash would have been sitting there able to hand over. It turns out that that was not entirely correct.”

In reality, “prime brokers were able to reuse clients’ assets to raise cash for their own activities,” the financial crisis commission wrote in its final report, published in January. Azarchs said that in her years covering Morgan Stanley for S&P she never heard executives discuss the risk that the funding might evaporate.
Fed  meltdown  fiancial  crisis  discountwindow  2008  jpmorgan  morganstanley  interbank  liquidity  freeze  emergency-lending  operation  benbernanke  henrypaulson  hedgefunds  panic  FinancialCrisisInquiryCommission  banking  lehmanbrothers  history  goldmansachs  broker  service  lesson  financialcrisis  PrimaryDealerCreditFacility  lenderoflastresort  PDCF  JimChanos  JohnMack  TermSecuritiesLendingFacility  TSLF  TARP  POMO  counterpartyrisk  toobigtofail 
august 2011 by asterisk2a
Wall Street Aristocracy Got $1.2 Trillion in Secret Fed Loans - Bloomberg
By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.
Fed  financialcrisis  GFC  bailout  TARP  discountwindow  2008  meltdown  FinancialCrisisInquiryCommission  liquidity  creditcrunch 
august 2011 by asterisk2a
Barofsky Says Fed's Secret Loans Needed More Oversight - YouTube
Neil Barofsky, former special inspector general for the Troubled Asset Relief Program and a Bloomberg Television contributing editor, talks about the Federal Reserve's emergency loans during the financial crisis. Fed Chairman Ben S. Bernanke's effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. Barofsky speaks with Erik Schatzker on Bloomberg Television's "InsideTrack."
barofsky  Fed  bailout  discountwindow  monetary  policy  transparency  oversight  TARP  GFC  financialcrisis  meltdown  FinancialCrisisInquiryCommission  centralbanks  2008  dollar 
august 2011 by asterisk2a
Barofsky Says U.S. Banks Are Still `Too Big to Fail' - YouTube
Neil Barofsky, former special inspector general for the Troubled Asset Relief Program, talks about the impact of the Dodd-Frank Act on the financial industry one year after its passage. Barofsky speaks with Lisa Murphy on Bloomberg Television's "Fast Forward." (Source: Bloomberg)
Dodd-Frank  toobigtofail  TARP  bailout  capitalism  systemicrisk  discipline  USA  wallstreet  moralhazard  barofsky  lobby  lobbyist  Lobbying  JamieDimon  benbernanke  timgeithner  washington  presidency  barackobama  regulation  reform 
july 2011 by asterisk2a
The Real Housewives of Wall Street | Rolling Stone Politics
Christy and her pal Susan launched their investment initiative called Waterfall TALF. [.//] But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

What started off as a targeted effort to stop the bleeding in a few specific trouble spots became a gigantic feeding frenzy. It was "free money for shit," says Barry Ritholtz, author of Bailout Nation. "It turned into 'Give us your crap that you can't get rid of otherwise.' "
TALF  2011  Fed  wallstreet  hostage  bailout  FinancialCrisisInquiryCommission  TARP  2008  USA  fraud  creditcrunch  financialcrisis  liquidity  insolvent  insolvency 
april 2011 by asterisk2a
YouTube - Barofsky Says U.S. `Hopelessly Naive' on Bank Bailouts
TARP Inspector - Neil Barofsky, special inspector general for the Troubled Asset Relief Program, talks about the performance of and outlook for TARP.- Banks got w TARP major advantage - home owners and business owners and unemployed either let down or in the case of the latter scrutinized- Moral Hazard - TARP was a present from Hank and Ben; had no to very little strings attached in order to guide banking
barofsky  TARP  henrypaulson  benbernanke  2011  fraud  banking  transparency  presidency  barackobama  FinancialCrisisInquiryCommission  finance  financialcrisis  2008  meltdown  abuse  policy 
march 2011 by asterisk2a
TARP Watchdog: Big Banks Got Unfair Advantage - WSJ.com
The federal rescue of the financial system in 2008 has provided large financial institutions with an unfair advantage in the form of cheaper access to credit, a bailout watchdog warned Thursday. “Absolutely and unambiguously the financial markets believe more than ever that the United States government will step in and save the ‘too big to fail’ institutions should there be another financial shock,” Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program, said at a hearing of the Senate Banking Committee.
toobigtofail  TARP  2011  regulation  reform  SEC  CFTC  FDIC  bailout 
march 2011 by asterisk2a
Jamie Dimons Biggest Disaster Is Waiting: Simon Johnson - Bloomberg
Jamie Dimon’s Biggest ‘Disaster’ Is Waiting (WSJ)“Dimon himself has argued that we can’t deal with too-big- to-fail until we have a way to manage the orderly liquidation of big banks. Yet even with the Dodd-Frank overhaul enacted, we still have no process for handling the failure of a big cross- border bank like JPMorgan. There is no framework — either through the courts or directly between governments — to deal with such a collapse, other than through a Lehman-type bankruptcy. So when a big bank next gets into trouble, the choice will be between allowing a meltdown, with presumably awful financial consequences, and providing a bailout, which can have big fiscal impact.”
toobigtofail  2011  fraud  Dodd-Frank  politics  lobby  finance  power  bailout  TARP  SEC  CFTC  FDIC 
february 2011 by asterisk2a
GM Could Be Free of Taxes for Years - WSJ.com
it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won't have to pay $45.4 billion in taxes on future profits.

The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM's case, the losses stem from years prior to when GM entered bankruptcy.

But the federal government, in a little-noticed ruling last year, decided that companies that received U.S. bailout money under the Troubled Asset Relief Program won't fall under that rule.

profit-shielding tax credit makes the bailed-out companies more attractive to investors, and that the value of the benefit is greater than the lost tax payments, especially since the tax payments would not exist if the companies fail.
GM  TARP  bankruptcy  2010  taxation  bailout  lobby 
november 2010 by asterisk2a
Cassano, Goldman's Cohn to Testify at Crisis Panel's Derivatives Hearing - Bloomberg
Cassano built AIG’s Financial Products unit over two decades into a business managing $2 trillion in derivative trades tied to bonds, currencies, commodities and stocks. He told investors in December 2007 that “it is very difficult to see how there can be any losses in these portfolios.”

AIG is yet to repay about $50 billion in Treasury assistance and owes about $25 billion on a Federal Reserve credit line. Goldman Sachs, the most profitable firm in Wall Street history, has paid back bailout funds with interest.

The Securities and Exchange Commission sued Goldman Sachs, the most profitable firm in Wall Street history, in April for misleading clients including ABN Amro Bank NV in CDO trades. Goldman Sachs has said the suit is unfounded.
AIG  derivatives  2007  2010  TARP  bailout 
june 2010 by asterisk2a
Geithner Says Bailout Money Is Being Repaid - NYTimes.com
Geithner, said on Tuesday that taxpayers were recovering their investment from the financial bailouts as the program was wound down. But he acknowledged there would probably be a loss from the rescue of the insurer American International Group.

More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out.

Richard Neiman, an oversight panel member who is New York’s top banking regulator, said many families that relied on the government’s program to keep their homes “may be left out in the cold.” He asked Mr. Geithner why thousands of mortgage modifications had been canceled.

Mr. Geithner said the homeowners involved had been unable to prove income and therefore their eligibility for the program.

However, he added, the government’s investment “will likely still result in some loss.” $36 billion. Much of the money needed to repay the government will come from the sale of assets.
TARP  AIG  mortage  property  timgeithner  2010  housing  housemarket  USA 
june 2010 by asterisk2a
Moody’s: Citigroup Still ‘Too Big To Fail’ For Now - Real Time Economics - WSJ
Moody’s on Monday said in its “Weekly Credit Outlook” that the Treasury Department’s planned sale of its 7.7 billion shares of Citigroup this year doesn’t mean the government would remove its implicit support of the company if Citigroup were to fall into trouble again.

“The likelihood of government support remains very high because of Citigroup’s systemic importance to the U.S. and global financial system as a major counterparty, payments and clearing agent, deposit taker, and provider of credit,” Moody’s said. This is important, because Moody’s said it doesn’t see any “”rating implications from the disposition of the government’s 27% stake in the company.” In other words, Citigroup can still continue issuing debt at levels that assume a type of government support.
citigroup  toobigtofail  2010  moody's  TARP 
april 2010 by asterisk2a
Economist Warns of Public Bubble - Real Time Economics - WSJ
The U.S. economy has traded a public bubble for a private one, according to this forecast by California forecasting firm Beacon Economics.

The firm’s stance is that the $787 billion federal stimulus package and the Federal Reserve’s near-zero interest rates have propped up the economy but will prove unsustainable and are actually exacerbating some of the imbalances that led to the recession. “The nation seems to be trading in its private bubble for a public one, swapping one set of unsustainable economic drivers for another,” the report said.
bubble  public  debt  deficit  budget  usa  2010  outlook  forecast  benbernanke  interestrate  private  treasuries  stimulus  housing  TARP  toxicassets  losses  accounting  property  inflation  savings  consumption  package  greatrecession  recovery  double-dip  recession  deflation  richardkoo  KennethRogoff 
april 2010 by asterisk2a
News Analysis - A Bold U.S. Plan to Help Struggling Homeowners - NYTimes.com
“The housing market is the Vietnam War of the American financial system,” said Howard Glaser, a housing consultant. “The federal government is in so deep, they have to keep ramping up to find a way out.”

The latest programs, together with foreclosure assistance efforts already in place, are aimed at helping as many as four million embattled owners keep their houses. But the measures, which will take as long as six months to put into practice, might easily fall victim to some of the conflicting interests that have bedeviled efforts to date. None of these programs have the force of law, and lenders have often seen no good reason to participate.
housemarket  housing  bailout  realestate  greatrecession  usa  2010  barackobama  economics  economy  homeownership  TARP  fanniemae  freddiemac  FHA 
march 2010 by asterisk2a
Reshaping the Federal Reserve | MintLife Blog | Personal Finance News & Advice
Fed assets rose 2.3 percent to $2.06 trillion” by the week ending August 19, 2009 – an increase up made almost entirely of private, mortgage-backed securities. Regardless of the merits or demerits of the Fed owning these particular securities, what matters from an institutional standpoint is that the Fed can now own private securities – a major departure from long-standing precedent.
AIG  Fed  TARP  politics  economy  lehmanbrothers  BearStearns  MBS  balancesheet  recession  2010  moralhazard 
february 2010 by asterisk2a
Obama's Big Sellout : Rolling Stone
Then he got elected.

What's taken place in the year since Obama won the presidency has turned out to be one of the most dramatic political about-faces in our history. Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside.
BobRubin  bailout  corruption  barackobama  presidency  government  usa  politics  economy  JosephStiglitz  AIG  bonuses  citigroup  campaign  TARP  history  lobby  wallstreet  lobbyist  Lobbying  larrysummers  timgeithner  goldmansachs  RahmEmanuel  barofsky  CDS  derivatives  regulation  reform  barneyfrank  LTCM  SEC  CFTC  ConsumerFinanceProtectionAgency  CFPA  coruption  FDIC  treasury 
february 2010 by asterisk2a
TARP Watchdog Neil Barofsky: Government Bailout Has Increased Risk Of Economic Crisis
"Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," Barofsky wrote.

Since Congress passed $700 billion financial bailout, the remaining institutions considered "too big to fail" have grown larger and failed to restrain the lavish pay for their executives, Barofsky wrote. He said the banks still have an incentive to take on risk because they know the government will save them rather than bring down the financial system.

Barofsky also said his office is investigating 77 cases of possible criminal and civil fraud, including crimes of tax evasion, insider trading, mortgage lending and payment collection, false statements and public corruption.
barofsky  TARP  housemarket  housing  bubble  2010  government  intervention  oversight  watchdog 
february 2010 by asterisk2a
Bailout watchdog investigating Fed's AIG secrecy
An independent investigator is launching two probes into the government's rescue of American International Group Inc. and the insurer's subsequent payments of billions to big banks.

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, says the Fed withheld documents he requested when auditing AIG's "backdoor bailouts" of banks it did business with, including Goldman Sachs Group Inc. Barofsky's allegations came in prepared testimony provided to members of the House Committee on Oversight and Government Reform and obtained by The Associated Press.

"issues have come to light that call into question whether the government has been and is being as transparent as possible with the American people." He blasts Treasury for issuing misleading public statements and outlines new investigations into the Federal Reserve and the New York Fed.
aig  benbernanke  bailout  TARP  barofsky  FinancialCrisisInquiryCommission  fed  government  Transparency 
january 2010 by asterisk2a
Obama Says Bank Fee Aimed at Recovering Rescue Money (Update1) - Bloomberg.com
“My determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at some of the very firms who owe their continued existence to the American people,”

The fee would apply to financial companies with assets greater than $50 billion. The levy would be based on bank liabilities and be imposed starting June 30 on companies such as Citigroup Inc., American International Group Inc. and Bank of America Corp.

The administration estimates it will raise $90 billion over 10 years and $117 billion over 12 years. An administration official who briefed reporters said the budget office estimates the 10-year figure will be enough to recoup all the losses in the TARP

With congressional elections coming up in November, Obama is tapping into public anger over the taxpayer bailouts of the financial and auto industries,
Even before it was formally released, the proposed Financial Crisis Responsibility Fee drew criticism from the industry.
TARP  banks  banking  regulation  reform  jpmorgan  jpmorganchase  taxation  FinancialCrisisResponsibilityFee  FinancialCrisisInquiryCommission 
january 2010 by asterisk2a
Did Morgan Stanley Just Screw Taxpayers Out Of $400 Million?
A bit about the re-payment of TARP / Bailout money.
.
Linus uses options pricing techniques to evaluate the present value of the warrants and compares it to what firms are actually paying. Taxpayers got 98 cents on the dollar--basically full price--from Goldman Sachs. American Express paid about 107 cents on the dollar.

Morgan Stanley paid just 68 cents on the dollar, according to Wilson's calcuations. By that metric, the Morgan Stanley warrant deal short changed taxpayers by about $400 million.

There's a wrinkle to this, however. A provision of the Capital Purchase Program agreements allow the banks to cancel half the warrants if they issue equity in the amount of taxpayers’ investment. If you discount Morgan Stanley’s TARP warrants by the chances that they would have cancelled half of them before the end of the year, then taxpayers got 128 cents on the dollar, according to Wilson.
TARP  goldmansachs  MorganStanley  AmericanExpress 
august 2009 by asterisk2a

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