Home/Tag: bailout

Auto Bailout Stalls Stimulus

Congress is back for the week, but we do not expect much to get done. House and Senate Democrats support allocating $25 billion from the Troubled Asset Relief Program to bailout the Big Three automakers, while the White House, Treasury and Congressional Republicans oppose expanding the program.

The auto bailout could be considered as part of a set of a broader economic stimulus package introduced by Senate Majority Leader Harry Reid (D-NV). We expect the Senate to take up some or all of the Reid

(Read More)

2019-02-06T17:22:36+00:00November 19, 2008|

Bailout Update

The Treasury Department announced over the weekend that it would infuse $250 billion directly into the banking system, starting with approximately $125 billion targeted at nine major institutions including Goldman Sachs and Citigroup.

Combined with the coordinated efforts of central banks around the world, the announcement appears to have successfully staunched the record erosion of equity prices over the past two weeks. Interest rates and other indicators are moving in a positive direction as well, indicating that the credit markets may finally loosen up.

If you are keeping track, the latest move by Treasury is just the last in a remarkable and

(Read More)

2019-02-06T17:22:36+00:00October 14, 2008|

Bailout and Extenders Combined

As equity markets continue their wild swings while the credit markets signal distress, Congress will make another run at the financial sector bailout this evening.

This time the Senate will try. The new package retains the core of the bailout — authority for Treasury to purchase hundreds of billions of dollars worth of troubled mortgages and other assets — while adding an increase in FDIC insurance levels from $100,000 to $250,000, hurricane relief, and the Senate-passed tax extender package.

The Senate will take up the package this evening, voting around 8:00 pm Eastern Time. If it passes, the House will take it

(Read More)

2019-02-06T18:06:06+00:00October 1, 2008|

Financial Bailout Package Fails in House

If you are following the markets, you might have noticed the financial sector bailout plan failed in the House, 216 to 206. Here’s the vote tally. When it become apparent the vote was going to fail, the Dow fell by more than 700 points (6%) and continues to trade in that range.

Your S-Corp team expects the House Leadership to work with the Administration to alter the plan and bring it back up on Wednesday. Possible changes include additional conditions for firms selling assets to the Treasury, a smaller cap on those

(Read More)

2019-02-06T18:06:06+00:00September 29, 2008|

Bailout Votes This Week

The House is scheduled to vote on the financial sector bailout package later today. If it passes, the Senate will take it up on Wednesday.

The package itself retains the core Paulson proposal to give Treasury the authority to purchase $700 billion in problem mortgages held by banks and other financial institutions. The goal of the plan is to restore confidence in these institutions by eliminating this source of fear and uncertainty for the next two years. The ultimate cost of this plan to taxpayers will depend on how much further home prices fall. Some observers believe the taxpayer will be

(Read More)

2019-02-06T18:06:06+00:00September 29, 2008|