bailout

TARP Draws to a Close Next Week, With Lower Costs Than Thought

After countless angry political speeches and the threat of economic collapse, the government%u2019s $700 billion bailout of banks, insurance companies and auto companies draws to a close Sunday - and it will likely cost only a fraction of what was expected. It will be years before it is possible to produce exact figures related to the bailout, which encompassed everything from mortgage finance colossuses Fannie Mae and Freddie Mac to auto company General Motors.

AIG Finalizes Its Plan to Repay the U.S. for Bailout

After months of planning, AIG announced Thursday that it had entered into an agreement with the Treasury Department and the Federal Reserve Bank of New York about how it will repay in full its obligations to the U.S. government and regain its independence.

Government Close to Announcing AIG Exit Strategy

The government is close to announcing its plans to end the bailout of American International Group (AIG), returning the company to independence and recovering taxpayer funds. The Treasury is planning to begin converting its $49 billion preferred stake into common stock for sales, Bloomberg News said without naming its sources. The plan could be announced this week.

Can U.S. Recoup Its General Motors Investment?

The U.S. government would have to sell all its shares in General Motors at an average price of $133.78 a share in order to break even on its stake in the company. That%u2019s $39.15 higher than the peak price of the old GM%u2019s shares, in 2000, during the peak of the boom in pick up trucks, The Wall Street Journal said.

AIG May Sell Japanese Units to Prudential Financial for $5 Billion

American International Group (AIG) may sell two Japanese life-insurance units to Prudential Financial Inc. (PRU) for a total of as much as $5 billion, The Wall Street Journal said. The agreement is currently "a few days away" from being ready, The Wall Street Journal said without naming its sources.

Fuld: Regulators Had 'Flawed Information' in Lehman Bankruptcy

U.S. regulators used "flawed information" when they decided not to extend the kind of aid to Lehman Brothers that later went to other financial institutions, the bank%u2019s former CEO Richard Fuld says. Lehman filed for the nation%u2019s largest-ever bankruptcy in September 2008, a move that sparked panic in the financial markets.

Fed Asks Court to Delay Release of Bank Bailout Documents

The Federal Reserve Board asked an appeal court to delay the court-ordered release of documents that would identify banks that might have failed without support from the U.S. government. The Fed asked the U.S. Court of Appeals in New York to delay the release while it consults with the Department of Justice about a possible appeal to the U.S. Supreme Court, Bloomberg News reported.

Standard and Poor's Lowers Ireland Rating on Bank Bailout Costs

Standard & Poor's cut its credit ratings for Ireland on Tuesday, saying that the cost of supporting the country%u2019s ailing banking sector has risen. S&P lowered its long-term rating one notch to AA-minus, the fourth highest investment grade, Reuters reported. The outlook on the rating is negative.

Fed Considering Reducing AIG's Credit Line by $3.6 Billion

The Federal Reserve is planning to reduce its credit line to American International Group (AIG) by about $3.6 billion, indicating growing confidence that the insurer can decrease its reliance on the public sector. The terms of AIG%u2019s 2008 rescue indicated that when the company paid down the credit line, it would reduce the amount of credit available, Bloomberg News reported without naming its sources. Last year, the Fed made an exemption on $3.6 billion of money from asset sales. Now it has decided that the relief may not be necessary any more.

GM IPO filing expected today?

General Motors is expected to file paperwork today for its initial public offering, according to Reuters, citing unnamed sources. GM is expected to...

GM's Fate Now Rests on
Daniel Akerson's Shoulders

Akerson will need to convince shareholders that GM, which is only a year out of bankruptcy and has posted just two profitable quarters, is a worthy investment. He'll also have to make sure the carmaker's dramatic turnaround is built to last.

GM registering for IPO tomorrow?

General Motors is said to have secured a $5 billion credit facility and plans to file a registration for its initial public offering tomorrow, a...

UK Taps American Banker to Help Sell Stakes in Lloyds and RBS

The British government hired American investment banker Jim O%u2019Neil to help it manage and sell its stakes in Royal Bank of Scotland (RBS) and Lloyds Banking Group (LYG). O%u2019Neil will join United Kingdom Financial Investments (UKFI) in October, The New York Times reported. He is currently head of corporate finance outside the Americas at Bank of America Merill Lynch. He will report to UKFI%u2019s chief executive, Robin Bundenberg.

Greece Successfully Sells 1.25 Billion Euro of Bonds

Greece raised 1.25 billion euro ($1.57 billion) of bonds, its first debt auction since taking international bailout loans. The sale of 26-week treasury bills was oversubscribed 3.64 times, the Associated Press reported. The yield on the bonds was 4.65%.

2008 Meltdown Vs. the S&L Crisis: Which Was Worse?

In the late '80s and early '90, more than 1,000 savings & loans failed in a financial crisis that cost the government $220 billion to resolve. By contrast, it looks like TARP will only cost the government $105 billion. So is the current financial crisis only half as bad? Not bloody likely.

Big Banks May Have to Pay for Fannie and Freddie

Banks are up in arms over language added to the proposed financial regulation overhaul that would make big financial firms shoulder some of the cost if government-backed mortgage lenders Fannie Mae and Freddie Mac go bust.

Banks Fear They Could Cover Freddie and Fannie Bailout

The financial reform bill contains a "bank tax" creating a fund to cover the costs of a big financial firm's collapse. Banks worry new changes mean the fund may have to cover any bailout of Fannie Mae and Freddie Mac -- who are staggering under problem loans from banks.

Aegon Looks to Sell Transamerica Re

Dutch insurer Aegon announced it will restructure operations in Britain and look into strategic options for Transamerica -- its U.S.-based life reinsurance arm.