DC Still Turns Blind Eye to Banks: Spitzer

(NEWSER) - During the Great Depression, legend has it a group of Wall Street bankers went to Hollywood to see if it was worth investing in, only to be immediately repulsed by the brazen displays of wealth they saw there. Now that it's the bankers being pilloried for their excesses, writes Neal Gabler in the Boston Globe, it could be argued that the whole economic mess we're in is the result of once-stodgy Wall Street becoming Hollywoodized. More»

Treasury will set 'floor price' on distressed assets to lure buyers

(NEWSER) - The Treasury's latest plan to rescue the banking industry relies heavily on private-sector investors, the New York Times reports. The government will guarantee a floor price on the toxic assets weighing down banks’ balance sheets, encouraging hedge funds, private equity groups, and even insurers to buy them. The plan should reduce the need for federal fundraising and mitigate the risk to taxpayers. More»

Bank bailout is highlight of latest accounting

(NEWSER) - So it's not exactly zero, but the $388 billion the feds dumped into bailouts is going to end up with a final price tag of ... $29 billion, reports the New York Times. Most of Treasury's losses are focused in housing rescues ($46 billion) and the Detroit bailout ($17 billion), while other segments of TARP actually reaped profits—like the $22 billion feds expect to pocket when they sell their stake in AIG. More»

Despised TARP expires Sunday

(NEWSER) - The terms "$700 billion" and "bailout" are paired as often as "Tea" and "Party," but it turns out that the government lifeline to banks and auto firms will only cost taxpayers a fraction of what was originally predicted. The hugely unpopular Troubled Asset Relief Program—TARP—expires on Sunday, and Treasury officials say the program will cost the government $50 billion at most—and possibly nothing. AIG , the largest beneficiary, yesterday announced a plan to start paying the government back. More»

GOP argument against reform is upside-down, writes Paul Krugman

(NEWSER) - With financial reform on deck, Senate Republicans are busily figuring out how many "can get away with claiming that war is peace and regulating big banks is doing those big banks a favor," writes Paul Krugman in the New York Times . Alabama's Richard Shelby is portraying efforts to rein in big banks as a bailout, and John Boehner recently urged bankers to stand up to Congress and "not let those little punk staffers take advantage of you." But in this case, Krugman says, it's those "punks" who are looking out for the taxpayer. More»