financial crisis

B of A Reaches Settlement with Fannie Mae on Risky Mortgages

Bank of America has reached a settlement with Fannie Mae on residential mortgage loans sold by the bank and its Countrywide unit to the agency ahead of the nation's 2008 financial crisis. The settlement includes a $3.6 billion payment to Fannie Mae.

Top 10 Business Stories of 2012

This would be the year when the global economy finally regained its vigor. At least that's what many had hoped. It didn't happen. So what were the top ten business stories of 2012?

Treasury Has Sold Its Last Shares of AIG (and Turned a Profit, Too)

The Treasury Department said Tuesday that it has sold all its remaining shares of AIG, wrapping up the government's biggest bailout of the financial crisis. With this sale, the government has received $22.7 billion more than the $182 billion in support it provided to AIG during the crisis.

Shadow Banking: The $67 Trillion Threat to the U.S. Economy

Shadow banking. The name alone sounds ominous -- and it should. Operating out of the spotlight of regulation, the shadow banking system could, given the right conditions, leap from its dark, financial hiding place and bring the U.S. economy to its knees, just like it nearly did in 2008.

Major Banks Cutting 160,000 Jobs Worldwide -- With More to Come

Major banks have announced some 160,000 job cuts worldwide since early last year, more layoffs are coming as the industry restructures. The numbers are much higher in Europe than in Asia or the United States -- and those loses will be a particularly heavy blow to Britain.

Vikram Pandit Quits as Citigroup CEO

Vikram Pandit abruptly stepped down as CEO of Citigroup on Tuesday after steering the bank through the 2008 financial crisis and the choppy years that followed. Also resigning: President and Chief Operating Officer John Havens. Citigroup offered no explanation for the sudden departures.

Is Another Banking Crisis Staring America in the Face?

Recent stress tests on America's big banks reveal that the financial crisis is far from over. While the "too big to fails" are in better shape than they were in 2008, there's still "room for improvement at virtually every firm."

Financial Crisis Lays Seeds of 'Dystopian Future'

The World Economic Forum warned Wednesday that the financial crisis that has gripped the global economy for the past few years is fueling resentment that could lay the seeds for a rising tide of protectionism, nationalism and social unrest. In its assessment of the risks to the global economy, the Forum flagged a "dystopian future" for much of humanity that could wipe out the gains achieved so far by globalization and undermine a nascent economic recovery.

Lehman Brothers' First Share Sells for $33,000

While creditors continue to fight over the nearly valueless crumbs of Lehman Brothers, one tiny piece of the investment bank just demonstrated close to a 66,000% return on investment -- as a collectors item: A 50-cent share in the bank was sold at auction Saturday for 24,000 euros -- about $33,000.

Alabama County on the Brink of Bankruptcy

Investors and officials in Jefferson County, Ala., are trying to negotiate a deal to avoid bankruptcy by Thursday's deadline. If they're unsuccessful, the county could end up with the largest Chapter 9 filing in U.S. history, which could rattle the $2.9 trillion municipal bond market.

Holly Petraeus, Servicemembers' Financial Advocate

The new Consumer Financial Protection Bureau is there to guard all of us being taken advantage of financially. Turns out, one group that needs extra protection in that arena: those who protect our whole nation -- U.S. service members and their families. And Holly Petraeus is going to make sure they get it.

Trust in Banks Falls Back to Financial Crisis Lows

Americans' overall trust in the nation's financial system has dropped from 26% to 20%, a level that matches the lows recorded during the heart of the financial crisis in late 2008, according to the latest results from the Chicago Booth/Kellogg School Financial Trust Index.

Why Young Workers Want a Good Old-Fashioned Pension

The conventional wisdom is that young people today expect they'll change employers repeatedly, and thus don't really care about pensions. But it turns out the conventional wisdom is wrong. With 401(k)s looking less secure, a defined-benefit plan is a real lure for younger workers.

Hedge Funds Hit New Record with $2T in Assets

Hedge funds, which experienced sharp drops in assets during the credit crisis, now hold an all-time high of more than $2 trillion in capital, according to a new survey by Hedge Fund Research Inc. The figure is 50% higher than crisis-driven lows reached in the first quarter of 2009.

CEO Pay: JPMorgan's Dimon Earned His Big Money

The average person may find it hard to imagine what big company CEOs do to justify their massive pay packages. Shareholders often ask a similar question: Why pay executives so much when the returns they produce are often so modest? But that's a question that doesn't apply to JPMorgan Chase CEO Jamie Dimon.

Why You're 45% Poorer and What You Can Do About It

The average American household suffered a huge drop in wealth because of the financial crisis, according to a survey released by the Federal Reserve. How did this happen -- and more importantly, what can you do about it?

Bank Bailouts Cost Much Less Than the FDIC Expected

Given the level of public outrage over the government's rescue of banks during the financial crisis, the final cost to the taxpayer of keeping those failed institutions afloat turns out to have been relatively modest: The FDIC has paid out a mere $8.89 billion to 165 banks since the crisis began.

As IPOs Revive, Should You Be Joining In?

After a few comatose years following the financial crisis, the IPO market is roaring back. And with names like Facebook and Groupon driving the rumor mill, smaller investors are wondering if how to get in on the action. The answer: Carefully, thanks to the risks.

Why Wall Street Paychecks Dwarf Those of Most Americans

Why is that so -- when the average worker hasn't enjoyed even a small raise? That's because Wall Street enjoys at least four major advantages that other industries can only dream about, including an implied backstop against losses by the federal government.

IMF Lays Out the Challenges Ahead for Global Recovery

In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.

Financial Meltdown Accountability: Bring On the Class Actions!

The Financial Crisis Inquiry Commission's report concludes that ineffective regulators and big banks were the primary causes of the financial meltdown. Next stop: Government and class action lawsuits to recoup some of what we all lost, and (please please please) criminal charges against the worst offenders too.

How the State of the Economy Has Changed Under Obama

Upon taking office in 2009, Obama inherited two costly wars and an economy that had violently imploded just months before. What's changed since then? Quite a bit, but the record is decidedly mixed. Here's a midterm report card of key indicators of the country's economic health.

They Called the Meltdown but Haven't Scored Well Since

There's no shortage of pundits who shot to fame on the back of a bold, contrarian call only to come up empty afterwards. Meredith Whitney and Nouriel Roubini are just two pundits who called the meltdown while most others were oblivious. Too bad they've fared less well lately.

Volcker to Resign From Economic Recovery Advisory Board

Paul Volcker, chairman of the Economic Recovery Advisory Board for President Barack Obama, is set to step down from the position next month. As a key adviser to the president, Volcker has advocated for tougher financial regulations and counseled the government on fiscal policy.

Savvy Tips for Shell-Shocked Investors

After getting hammered by the financial crisis two years ago, investors are finally showing signs of crawling out of their shells again. But they're still scarred and likely to be playing it a lot safer this time around. And a new book holds promise for helping them do that.

Stocks Climb Back to Their Pre-Lehman Disaster Level

Stocks closed broadly higher Tuesday, helped by more deal activity in the financial sector and upbeat earnings from the tech sector. After more than two years, the market has regained all its losses following the implosion of Lehman Brothers in September 2008.

What Recovery? Most Americans See Worse Times Ahead

In a nationwide survey conducted by Marist College, that 53% of those polled think the U.S. will see more economic hardship ahead. Eight percent were unsure, while 39% felt the worst of the fallout from the 2008 financial crisis had come and gone.