May have been a big reason for Paulson's TARP flip-flop
Wall Street Journal Nov 28, 08 12:55 PM CST
(Newser)
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The government’s economic rescue plan continues to be hampered by an understaffed Treasury Department, the Wall Street Journal reports. With 40 employees, the Office of Financial Stability—which manages TARP—says it has about half the staff it needs, and banking regulators say there’s a big backlog of relief applications. Many decisions are being left to interim staff as the department struggles to find permanent hires.
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Dems wonder if feds' prostitution sting was politically motivated
New York Times Nov 25, 08 4:23 PM CST
(Newser)
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The House Financial Services Committee is poised to open an inquiry into the investigation that led to Eliot Spitzer’s resignation, the New York Times reports, with Democratic members wondering aloud if the federal probe could have been a politically motivated hit job. The former New York governor was not charged in the prostitution scandal, so the inquiry will be the only detailed examination.
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MARKET Open
Stocks climb as investors are cheered by Fed plan to help consumer credit
Wall Street Journal Nov 25, 08 9:13 AM CST
(Newser)
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Stocks continued to rise at the open this morning, with the Dow climbing more than 100 points and the S&P gaining 1.5%, as investors cheered the Treasury and Fed’s new program to boost consumer credit, the Wall Street Journal reports. The Nasdaq, however, was off slightly. The Dow has gained 10% during the past two sessions, its fastest 2-day climb since 1987.
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UPDATED
Will lend to investors buying credit-backed securities
Wall Street Journal Nov 25, 08 7:35 AM CST
(Newser)
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The Fed today unveiled a new $200 billion lending facility designed to thaw the freeze in consumer credit, the Wall Street Journal reports. The facility will lend to investors who want to buy securities backed by credit cards, auto loans, student loans, and loans to small businesses. The Fed also committed to buying up to $600 billion in debt issued by housing lenders.
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Paulson, too, mulls more aggressive action, tapping bailout funds
Wall Street Journal Nov 24, 08 10:50 AM CST
(Newser)
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Barack Obama’s financial team is constructing a $500 billion stimulus plan that it hopes to rush through Congress early in 2009, the Wall Street Journal reports. Obama would sign the bill, which is far more ambitious than anything discussed during the campaign, almost immediately after his inauguration. “This is an extraordinary time,” an aide said, “and extraordinary responses are needed.”
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Bush administration 'creatively working'
on financial crisis
ABC News Nov 17, 08 9:00 PM CST
(Newser)
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On the eve of his testimony before Congress, beleaguered Treasury Secretary Henry Paulson used last night's speech to defend the administration's response to the nation's "unprecedented" financial crisis. Paulson said without the $700 billion Wall Street bailout, things would be even worse, ABC News reports. "It's hard to get credit for what didn't happen," he said.
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Treasury's point man takes heat from lawmakers
Washington Times Nov 14, 08 3:38 PM CST
(Newser)
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The Treasury Department's radical shift in the execution of the government bailout drew fire from both sides of the aisle in a Capitol Hill hearing today, the Washington Times reports. Neel Kashkari, point man for the $700 billion plan, felt the wrath of the House Oversight subcommittee's ranking Republican, Darrell Issa, as well as Democrats Dennis Kucinich and Elijah Cummings. "This is a classic bait-and-switch," Kucinich railed.
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If confirmed, Barofsky will take bailout responsibilities from Treasury's inspector general
Associated Press Nov 14, 08 10:45 AM CST
(AP)
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The Bush White House today finally named a special inspector general to oversee the Treasury Department's $700 bailout, nominating a New York federal prosecutor named Neil Barofsky. The move comes a day after the Washington Post complained in a Page 1 story that 6 weeks into the bailout, no action on oversight had been taken. If confirmed by Senate, Barofsky, an assistant US attorney, will be responsible for conducting audits and investigations of how the government spends the bailout money.
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ANALYSIS
Bloomberg Nov 13, 08 7:54 PM CST
(Newser)
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Henry Paulson’s recent about-face on his plans for the $700 billion bailout do not bode well for his legacy, write Bloomberg's Rebecca Christie and Matthew Benjamin. Perhaps most damaging is not the change of mind, but what it says about his initial plans. “This is a flip-flop,” one observer said, “but on the other hand, when they first proposed the thing, they didn't really know what they were doing.”
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New rule stops banks, credit card companies from processing bets
Wall Street Journal Nov 13, 08 2:08 AM CST
(Newser)
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The Treasury Department and Federal Reserve will effectively outlaw most forms of online gambling with new rules that bar banks and credit card companies from processing transactions related to internet betting. The banking and gaming industry and House Financial Services Chairman Barney Frank oppose the new rules, reports the Wall Street Journal. The regulations, issued yesterday, will give companies just over a year to fully comply.
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US scraps insurer's original $123 billion package as company's struggles continue
Wall Street Journal Nov 10, 08 5:22 AM CST
(Newser)
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The $123 billion the US pledged to foundering insurance giant AIG will grow to at least $150 billion, reports the Wall Street Journal , as the company continues to hemorrhage money. AIG, which today reported a loss of $24.5 billion in its most recent quarter, will get more cash and lower rates; the federal government will get a $40 billion stake.
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Pelosi, Reid want $700B bailout to aid GM, Ford, and Chrysler
Politico Nov 8, 08 4:56 PM CST
(Newser)
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Congressional Democrats are urging Henry Paulson to pump funds into the sputtering Big Three automakers, Politico reports. In a letter to the treasury secretary, Nancy Pelosi and Harry Reid called for a broadening of the $700 billion bailout package to help GM, Ford, and Chrysler qualify for federal aid. A thriving auto industry is vital to restoring market stability, the Dems said.
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