government bailout

Treasury Cuts Stake in GM to 7.3%

Treasury has sold another block of shares in General Motors, reducing its stake to 7.3 percent as it moves toward exiting its holdings in the automaker by the end of March.

Treasury's Big Stake Weighs on AIG's Stock Price

During the past month, AIG stock fell nearly 10% drop after an announcement that the government would sell some of its stake in the insurance giant. The Treasury's ownership in the company has declined from 92% to 77%, but the prospect of its future sell-offs are holding the stock down.

Citigroup Promotes John Havens to President and COO

Citigroup on Wednesday announced the promotion of John Havens, the head of its Institutional Clients Group, to president and chief operating officer. The move is designed to make the financial behemoth nimbler by cutting the number of executives who report directly to CEO Vikram Pandit.

Obama Praises GM Bailout as Shares Gain 4% in IPO

Following General Motors' historic return as a publicly traded company Thursday, President Obama said the U.S. government, despite the many critics, is on track to more than recoup the nearly $50 billion it invested in the Detroit automaker.

TARP Investment Earned Taxpayers 8.2% in Two Years

The TARP bailout of financial firms has yielded a return of 8.2% in two years. This return, $25.2 billion on an investment of $309 billion, beats that offered by U.S. Treasuries, high-yield savings accounts and certificates of deposit, Bloomberg News reported.

Treasury Sells More Citi Shares

The U.S. Department of the Treasury announced Thursday that it has sold all of the trust preferred Citigroup shares it held for a net profit to the taxpayer of $2.246 billion. In addition, Treasury also announced it sold 1.5 billion shares of Citigroup common stock, according to a plan announced in July, lowering its stake in the bailed out bank from 18% to 12.4%.

Ireland Bank Bailout Could Cost $68 Billion

The Irish government is working to take majority control of one troubled lender, Allied Irish Banks (AIB), and to inject yet more cash into another, Anglo Irish Bank Corp. The moves could take the cost of Ireland%u2019s bank bailout to as much as 50 billion euros ($68 billion), according to Bloomberg News.

GM's IPO Size Likely to Shrink

At an anticipated $16 billion, General Motors' pending initial public offering was expected to be the second largest in history. Now, the No. 1 U.S. automaker is revising IPO expectations downward, anticipating it will bring in $8 billion to $10 billion when shares go public in November.

GM Resumes Political Donations

General Motors Co., which is 61% owned by the U.S. government, resumed making political donations after an 18 month break. The company%u2019s political action donated a total $48,000 to Republicans and Democrats, with contributions going to figures including Sen. Charles Schumer, D-NY, and Rep. Dave Camp, R-Midland, The Detroit News reported.

GM CEO: It Will Take Years to Repay Govt

The federal government's controversial decision to step in and save General Motors from insolvency was the right thing to do, the automaker's new Chief Executive Daniel Akerson said Thursday in Detroit.

Obama Administration Considering New Mortgage Industry Fees

President Barack Obama%u2019s administration may propose that any government backing of mortgages be funded by fees on mortgage lenders, The Wall Street Journal reported. The administration has not come up with a final plan for mortgage entities Fannie Mae and Freddie Mac, The Wall Street Journal reported without naming its sources. Still, the consensus is that the mortgage market requires some kind of government guarantee.

Chrysler: Making a Profit in 2010 Will Be 'Difficult'

As it struggles to boost sales amid an economic slump, Chrysler CEO Sergio Marchionne warns that the automaker will have a "difficult" time making a net profit in 2010. Marchionne offered no guidance for the company%u2019s performance in the third or fourth quarters of the year, Reuters reported. Chrysler, the no.3 U.S. automaker, reported a net loss of $172 million in the second quarter and $197 million in the first quarter.

Fannie Mae Asks for Another $1.5 Billion in Aid

Fannie Mae requested another $1.5 billion in federal aid after reporting a loss for the second quarter. The extra funds would raise the total assistance to Fannie Mae to $86.1 billion, the company said in its earnings report. Federal assistance has helped keep Fannie Mae afloat, but also created a large dividend obligation.

Would Rating Downgrades Clip Bank Profits?

Moody's is reviewing 10 large regional banks for possible downgrades because it thinks financial reform means total government support is now less likely. That's setting off a debate about whether those banks will actually take a hit to profitability.

Senate Set to Begin Voting on Financial Reform Bill

The Senate will begin voting on amendments to the financial reform bill Tuesday. The bill would create a new consumer protection watchdog within the Federal Reserve; increase bank supervision; and end "too big to fail" bailouts.