Category: Credit Crisis Bailouts
The analysis published under this category are as follows.
Tuesday, July 26, 2011
Bernanke Secretly Gives away Sixteen Trillion Dollars / Politics / Credit Crisis Bailouts
By: Richard_Mills
The first ever GAO (Government Accountability Office) audit of the US Federal Reserve was recently carried out due to the Ron Paul/Alan Grayson Amendment to the Dodd-Frank bill passed in 2010. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, while leading the charge for an audit in the Senate, watered down the original language of house bill (HR1207) so that a complete audit would not be carried out. Ben Bernanke, Alan Greenspan, and others, opposed the audit.
Tuesday, July 26, 2011
Greek Debt Bailout Might Succeed, If All Goes According to Plan / Interest-Rates / Credit Crisis Bailouts
By: Victoria_Marklew
With the second bailout agreement for Greece announced on Friday (July 22), the EU has stumbled toward a new level of institutional development. However, Greece still does not have a sustainable funding package in place; and the easing of contagion pressures on other Euro-zone members may be short-lived.
Friday, July 22, 2011
Sarkozy Saves Greece And Launches The F.S.F. / Politics / Credit Crisis Bailouts
By: Andrew_McKillop
In a classic of its type, French president Nicolas Sarkozy, 21 July evening time in Brussels, gave what looked and sounded like an impromptu press conference but supposedly wasn't. In a state of high excitement he explained how almost alone, or at least with German chancellor Angela Merkel they had saved Greece. The figures thrown out by Sarkozy were part of the circus show, for example that Greek debt, in 1 year, had grown by about 100 billion euro or by nearly 40 percent of GNP, to what Sarkozy claimed was 350 billion euro, which is difficult on a GNP he also claimed as 230 bn euro this year. To be sure, 10 or 20 bn euro this way or that counts for little, in such exciting times.
Thursday, July 21, 2011
The Bank of America Settlement: The Latest Travesty in the U.S. Banking System / Politics / Credit Crisis Bailouts
By: Money_Morning
Shah Gilani writes:
If there's one thing the recent Bank of America Corp. (NYSE: BAC) settlement proposal demonstrates, it's this: Calling the easy treatment that big banks have been enjoying in recent court and regulatory actions "a travesty of justice" is like calling the Grand Canyon a ditch.
Thursday, July 14, 2011
Beware, Taxpayers: The Days of U.S. Bank Bailouts Might Not Be Over / Politics / Credit Crisis Bailouts
By: Money_Morning
Kerri Shannon writes: The U.S. government has spent more than $12 trillion to prop up large financial institutions since the 2008 financial meltdown, but more taxpayer money could still be used for U.S. bank bailouts.
A Standard & Poor's report Tuesday said that despite the government's efforts at financial reform through the Dodd-Frank Wall Street Reform and Consumer Protection Act, the U.S. Treasury, U.S. Federal Reserve and Congress could still bail out a "too-big-to-fail" bank if it felt it necessary to contain risk.
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Thursday, January 27, 2011
U.S. Taxpayers Make $12.3 Billion Profit on Citigroup Bailout / Companies / Credit Crisis Bailouts
By: Money_Morning
Don Miller writes:
The U.S. Treasury on Monday will complete the sale of warrants of Citigroup Inc. (NYSE: C), allowing it to realize a $12.3 billion profit from its bailout of the banking giant.
The United States will record a net $312.2 million from the sale of its final 465.1 million warrants to purchase common shares of Citigroup, the Treasury Department said Wednesday. Last year, Treasury sold its 34% stake in Citigroup common shares.
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Thursday, January 13, 2011
Bonus Bonanza for UK’s Top Bankers / Politics / Credit Crisis Bailouts
By: Global_Research
Robert Stevens writes: The five biggest UK banks are set to pay out massive bonuses for 2010. Chief executives at HSBC, Barclays, Royal Bank of Scotland (RBS), Lloyds and Standard Chartered will receive millions in bonuses, as working people endure unprecedented cuts in pay, working conditions and social services imposed by the Conservative/Liberal Democrat government.
Monday, December 13, 2010
The Fed Vastly Expands Moral Hazard, Wrecking the American Economy / Politics / Credit Crisis Bailouts
By: Michael_S_Rozeff
This definition of moral hazard from Wikipedia is quite satisfactory: "Moral Hazard occurs when a party insulated from risk behaves differently than it would behave if it were fully exposed to the risk.
"Moral hazard arises because an individual or institution does not take the full consequences and responsibilities of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to hold some responsibility for the consequences of those actions. For example, a person with insurance against automobile theft may be less cautious about locking his or her car, because the negative consequences of vehicle theft are (partially) the responsibility of the insurance company."
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Friday, December 10, 2010
Economic Risk Leads to Financial Mistrust / Economics / Credit Crisis Bailouts
By: Barry_Elias
My Nov. 12 blog described how modern economists severely miscalculated the economic realities, which fueled the 2008 financial crisis.
Five days after this piece was published, the Institute for New Economic Thinking (INET) issued a grant to a team of experts: The mission is to derive a computational model that would represent the underlying dynamics of the financial crisis.
Friday, December 10, 2010
AIG to Borrow from Treasury as Part of Exit Plan / Companies / Credit Crisis Bailouts
By: Money_Morning
Don Miller writes:
The U.S. government and American International Group Inc. (NYSE: AIG) on Wednesday announced a deal to accelerate repayment of taxpayer dollars and clear the road for the company to reclaim its independence.
Terms of the arrangement, which were outlined in September, call for the company to borrow funds from the Treasury Department to repay the remainder of its debt owed to the Federal Reserve, leaving the Treasury holding the bulk of the beleaguered company's common stock.
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Wednesday, December 08, 2010
BernankeLeaks, Fed and Wall Street Banks $12.3 Trillion Biggest Scam in World History / Politics / Credit Crisis Bailouts
By: David_DeGraw
What if the greatest scam ever perpetrated was blatantly exposed, and the US media didn’t cover it? Does that mean the scam could keep going? That’s what we are about to find out.
I understand the importance of the new WikiLeaks documents. However, we must not let them distract us from the new information the Federal Reserve was forced to release. Even if WikiLeaks reveals documents from inside a large American bank, as huge as that could be, it will most likely pale in comparison to what we just found out from the one-time peek we got into the inner-workings of the Federal Reserve. This is the Wall Street equivalent of the Pentagon Papers.
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Monday, December 06, 2010
Fed Report Reveals Great Bank Heist of 2008-2009 / Politics / Credit Crisis Bailouts
By: Barry_Grey
The US Federal Reserve Board on Wednesday released documents on emergency measures it took between 2007 and 2010, using taxpayer funds, to bail out major financial firms in the US and around the world. The sums involved are staggering.
Fed bailout loans outstanding reached a high of $3.3 trillion, but the cumulative amount of cash funneled by the US central bank to banks, hedge funds and major industrial corporations reached the tens of trillions of dollars.
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Sunday, December 05, 2010
Fed's Global Pawnshop Hands Out $9 Trillion in Short-term Loans to 18 Financial Institutions / Interest-Rates / Credit Crisis Bailouts
By: Global_Research
mybudget360.com writes: Federal Reserve made $9 trillion in short-term loans to only 18 financial institutions. Since 2000 the US dollar has fallen by 33 percent. The hidden cost of the bailouts.
The Federal Reserve released a stunning report showing the details of bailouts that occurred during the peak of the credit crisis. They won’t call it “bailouts” but giving money when others won’t is exactly that. What the report shows is that the Fed operated as a global pawnshop taking in practically anything the banks had for collateral.&
Saturday, December 04, 2010
Fed Financial Crisis Rescue or Coup? / Politics / Credit Crisis Bailouts
By: Andy_Sutton
As some of the disclosures required by the financial reform bill are made, everyday Americans are starting to figure out what many zealous economy and market watchers have known since 2008: The Fed’s rescue programs weren’t just aimed at domestic banks with Manhattan headquarters. The aid stretched far into the reaches of everyday America, with the recipients of approximately $885 billion in loans still not disclosed.
Friday, December 03, 2010
Fed Report Reveals Multi-Trillion-Dollar “Shadow Bailout” / Politics / Credit Crisis Bailouts
By: Global_Research
Andre Damon writes: The US Federal Reserve on Wednesday posted details of its multi-trillion-dollar “shadow bailout” programs, showing that nearly every major US financial institution benefited from billions in unreported government loans.
The data from 21,000 Fed transactions carried out between December 2007 and July 2010 involves eleven special lending facilities set up by the US central bank at the height of the financial crisis to funnel trillions of dollars into large financial companies. The money was lent at close to zero interest with no strings attached. The banks and corporations on the receiving end of the massive bailout were not required to even report what they did with the government cash.
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Thursday, December 02, 2010
Fed Data Shows Foreign Banks and Hedge Funds Huge Beneficiaries of Tax Payer Bailouts / Companies / Credit Crisis Bailouts
By: Washingtons_Blog
Fed Data Shows Foreign Banks Huge Beneficiaries of Emergency Lending Programs, Hedge Funds, McDonald’s, Harley-Davidson and Others Also Bailed Out
Under orders from Congress pursuant to the Dodd-Frank financial legislation, the Fed has finally released details of its emergency lending starting in 2007.
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Saturday, November 27, 2010
Ireland E.U. IMF Bailout Loan 6.7% Interest Rate Shocker? Belgium Joins PIGIBS / Interest-Rates / Credit Crisis Bailouts
By: Nadeem_Walayat
There is widespread speculation in the mainstream press that Ireland's Euro 85 billion bailout loan could carry an interest rate as high as 7% with most suggesting 6.7%, which is far higher than the expected rate of 5% that Greece agreed to in May and currently averages at 5.2% and therefore represents an 33% premium and thus would place a far higher annual debt interest burden on Ireland.
Wednesday, November 24, 2010
Debt Crisis Destabilises Irish Government, E.U. Scrambles to Prevent Contagion From Spreading / Interest-Rates / Credit Crisis Bailouts
By: Money_Morning
Don Miller writes:
Ireland's debt crisis has destabilized its government and is fueling speculation that the $118 billion (85 billion euros) bailout may not be enough to keep it from spreading to other Eurozone countries including Portugal, Spain and Italy.
Nervous financial markets yesterday (Tuesday) continued to suggest global investors lack confidence that some governments will be able to manage their debt and cast doubt on the European Union's (EU) ability to contain the crisis.
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Monday, November 22, 2010
Ireland Bailout Consequences for Britain, Portugal Next? Stock Market Correction Over? / Economics / Credit Crisis Bailouts
By: Nadeem_Walayat
Ireland's Government drops the mantra of no bailout by finally coming clean to the Irish public that a multi-billion Euro bailout has been agreed ahead of markets opening on Monday. Many Irish citizens will be angry that they have been repeatedly lied to as a series of senior government politician's have stepped forward these past few weeks to make announcements that Ireland was not seeking a bailout when the facts where the complete opposite as an accelerating bank run was under way on Irish banks, with depositors having already pulled out an estimated Euro 25 billion.
Thursday, November 18, 2010
Ireland Bailout Imminent, Press Euro-zone Breakup Speculation, Germany Leaving the Euro? / Politics / Credit Crisis Bailouts
By: Nadeem_Walayat
Irish politicians during the past week have been playing the game of stating that Ireland does not want an E.U. / Euro-zone bailout (loan), not because Ireland can survive without a bailout but rather Ireland is trying to ensure that the strings attached to the inevitable bailout will not wreck the Irish economy for the next decade, especially as the likes of Germany (primary bailout funder) wants Ireland to raise its highly competitive 12% Corporation Tax that entices businesses across the E.U. to relocate to Ireland. Which I am sure that the Irish Government will intensely resist giving up, which therefore acts as a measure against which to evaluate the degree to which the Irish negotiators have been successful in gaining the bailout at a too high price for Ireland.