All Posts Tagged With: "Government Bailouts"
Morgan Stanley (NYSE: MS) To Win Big in Government Sale of Citigroup (NYSE: C) Shares
Investment banking giant Morgan Stanley (NYSE: MS) will be a significant beneficiary in the US government plan to sell off its stake in Citigroup (NYSE: C) over the course of 2010. A contract between Morgan Stanley and the Treasury Department allows the company to charge a management fee for assisting in the sale of Citigroup [...]
Goldman Sachs (NYSE:GS) Questioned on Build America Bonds Underwriting Fees
Goldman Sachs (NYSE:GS) has come under fire concerning another issue as Senator Charles E. Grassley, the senior Republican on the Finance Committee, asked in a letter to Chief Executive Lloyd C. Blankfein about the underwriting fees associated with the Build America Bonds, which were supposedly created for the purpose of creating jobs primarily through projects [...]
Big Banks Like Bank of America (NYSE: BAC) and Citigroup (NYSE:C) Still Quietly Using Government Money
Big banks like Bank of America (NYSE: BAC) and Citigroup (NYSE:C) are still using free government money, in the form of low interest loans from the Temporary Liquidity Guarantee Program (TLGP), guaranteed by the FDIC. So while CEOs and industry spokespeople decry the government for its “interference” despite the fact they’ve paid back their TARP [...]
Warren Buffett Doesn’t Like Obama Bank Tax, Saying it’s “Trying to Punish People”
I was surprised to hear Warren Buffett state in an interview on Bloomberg Television yesterday that he opposed the Obama tax on financial institutions, as he views it as “trying to punish people.” Buffett said in the interview that “I don’t see any reason why they should be paying a special tax,” as those proposing [...]
Large Banks Fighting Back Against Obama Tax by Hiring Supreme Court Lawyer
When the top lobbying arm of the banking industry hired one of the leading Supreme Court lawyers to go over the proposal by Obama to tax the largest banks in the country, they are obviously sending a message to the administration, the question is what is the message meant to convey and will it be [...]
Obama Plans Bank Tax On AIG (NYSE: AIG), Bank Of America (NYSE: BAC), Citigroup (NYSE: C) And Other Big Banks To Recoup TARP Losses
President Obama is planning to announce Thursday a bank tax on 50 of the nation’s largest financial institutions in order to recoup losses from the bank bailout. The tax would be applicable to any institution with more than $50 billion in assets and would kick in on June 30. News of the possible tax broke [...]
Goldman Sachs (NYSE:GS) Sued By Two Pension Funds Over Bonuses
The divisive issue of bonus payments to investment bankers reared its head again as it was announced that Goldman Sachs (NYSE:GS) is being sued by two pension funds over planned bonuses paid to employees. The plaintiffs in the lawsuit, released on Tuesday, maintain that the company shouldn’t use its normal methods for calculating bonuses in [...]
Editorial: Financial Crisis Theater Starring – Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM), and Morgan Stanley (NYSE:MS)
The next production of government sponsored financial crisis theater is set to open this week in Washington DC, and has assembled an all star ensemble cast of Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM), and Morgan Stanley (NYSE:MS). The play stars the Federal Crisis Inquiry Commission in the lead role as [...]
Federal Reserve Proposes ‘Term Deposit Facility’ to Withdraw Money from Banking System
On Monday the Federal Reserve put forth the idea of creating a new way to withdraw money from the banking system when the need to tighten money policy presents itself. Dubbed a term deposit facility, what it will do is allow banks or other financial institutions opportunity to earn interest on loans that are of [...]
US Quietly Concedes Billions in Tax Benefits to CitiGroup (NYSE:C)
In a move that quietly flew under the radar, The Washington Post reported today that the US government granted Citigroup (NYSE:C) billions in tax exemptions as part of a deal between the company to repay TARP bailout money. The concession is designed to help the company survive the current economic crisis despite the gigantic taxpayer [...]
Schizophrenic Obama Administration Continues to Send Mixed Messages to Banking Industry
Obama doesn’t seem to have the ability to comprehend, not only how indecisive he is, but also the intellect to grasp the issues in relationship to the banking industry so he can understand and communicate a message that makes sense. As it stands, Obama doesn’t seem to even know he is sending more than one [...]
Wells Fargo (NYSE:WFC) Secures Deal to Pay Back $25 Billion in TARP Funds
Wells Fargo (NYSE:WFC) announced it has made a deal with the government to pay back all of the $25 billion in TARP funds it received from taxpayers. Although it has resisted doing so, Wells Fargo announced they would offer a $10.4 billion share offering as part of the capital raised to pay back the money [...]
Canadian Finance Minister Jim Flaherty Says ‘No’ to Proposed International Tax on Bank Bonuses
The Finance Minister of Canada, Jim Flaherty, is rightly rejecting proposals from some leaders of the G8 for an international tax on bank bonuses, as he’s not interested in ‘punishing’ those who work in a highly profitable Canadian industry. Referring to the misguided decisions by British and French officials to tax bank bonuses at a [...]
Goldman Sachs (NYSE: GS) To Eliminate Bonuses For Few Senior Executives
Goldman Sachs (NYSE: GS) announced on Thursday that it would eliminate cash bonuses for a small number of top officers, opting to pay them instead in company stock options. The move only affects a small number of senior executives and is widely interpreted as a move to placate public anger, reduce the threat of potential [...]
Troubled Asset Relief Program (TARP) to be Extended by Obama Administration
The use of taxpayer dollars to bail out Wall Street will continue, as Treasury Secretary Timothy Geithner, talking to a watchdog panel on Thursday said the Obama Administration will extend the highly controversial and unpopular bailout program until October 2010, the original period the legislation allowed. The plan was going to be shut down at [...]
TARP a Disaster Says Congressional Oversight Panel
Most people know that the TARP was and is a disaster, as it has done nothing but allow the terrible banking and business practices of the large financial institutions to be rewarded by keeping them going by throwing taxpayer dollars their way. Although the Congressional Oversight Panel claims TARP stopped the financial panic while helping [...]
U.S. Gov’t To Slash Estimate Of TARP Cost By $200 Billion
The Obama Administration is expected to announce a drastic reduction to its cost estimate of the Troubled Asset Relief Program (TARP). The new estimate will reportedly be for a cost of $141 billion, well lower than the $341 billion the administration predicted back in August. The report published by the Wall Street Journal did not [...]
Bank of America’s (NYSE:BAC) Board of Directors to Meet Tuesday, May Discuss New CEO
The Board of Directors of Bank of America (NYSE: BAC) is slated to meet next week and may discuss a new Chief Executive Officer (CEO) to succeed the retiring Kenneth Lewis who is set to retire at the end of this year. The Tuesday meeting is a regularly scheduled one, and though no formal agenda [...]
US Treasury Set to Auction Capital One Financial (NYSE: COF) Warrants
The United States Treasury announced on Tuesday plans to auction off 12.66 million warrants to buy stock in Capital One Financial (NYSE: COF). The auction, scheduled for Thursday (starting at 8:00am EST), is the first sale by the Treasury of assets purchased under the governments’ bank bailout program whereby banks received capital injections of [...]
Warren Buffett Increases Stake in Wells Fargo (NYSE:WFC) Via Berkshire Hathaway (BRK:A) – Is it Ethical?
In its most recent regulatory filing, Berkshire Hathaway (BRK:A) increased its stake in Wells Fargo (NYSE:WFC) by over 10 million shares in the third quarter. To me, this does raise ethical questions on the part of the actions and comments of Warren Buffett, who has been backing up the bailout of banking and other institutions [...]
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Great post but complicated to understand since I am from Faroe islands ;-) 
What would be your top three tips for anyone new to this topic?