Category Archives: bailouts

GM’s Whining Bondholders

Andrew Ross Sorkin takes aim at GM’s bondholders today: Not three hours after the president spoke on Monday I received an e-mail message from a group representing G.M. bondholders — people who are likely to have an enormous influence over … Continue reading

Posted in bailouts, bonds and loans | 48 Comments

Why Healthy Banks Shouldn’t Repay TARP Funds

I got an interesting response from one reader to my post on whether healthy banks should be able to give back TARP funds. Here it is, with permission; the short version is basically "no". The TARP preferred shares were extended … Continue reading

Posted in bailouts, banking | 7 Comments

Who’s Gaining from the AIG Unwinds?

Tyler Durden has a scary post up, connecting banks’ profitability in January and February to the fact that those were the months when AIG Financial Products was unwinding an enormous number of its contracts en masse. These trades, initiated by … Continue reading

Posted in bailouts, derivatives | 5 Comments

America’s Insolvent Banks

John Hempton has 5,155 words on bank insolvency today, and makes the good point that "insolvency" is not well-defined. So what do I mean when I say that some big banks are insolvent? I mean that when you look at … Continue reading

Posted in bailouts, banking | 2 Comments

The Psychic Bailout

Guess what? It turns out that hope is a plan, after all! Six middle-aged Englishwomen have decided that they can get the country to "overcome whatever obstacles and difficulties we may face as a country, an economy and as individuals": … Continue reading

Posted in bailouts | 1 Comment

Barack Obama for Treasury Secretary!

After Tim Geithner’s uninspired and uninspiring performance today, Barack Obama stepped up to show him how questions about nationalization should be answered: TERRY MORAN: There are a lot of economists who look at these banks and they say all that … Continue reading

Posted in bailouts, banking | 1 Comment

Geithner’s Vague Plan

I like the symmetry here. On November 21, when Barack Obama announced that he was nominating Tim Geithner to be his Treasury secretary, the Dow rose 494 points and broke through the 8,000 barrier. On February 10, when Geithner gave … Continue reading

Posted in bailouts | 1 Comment

Treasury’s $78 Billion TARP Giveaway

The Congressional Oversight Panel is certainly doing its job of double-checking TARP expenditures and Treasury statements. Here’s a bit of its latest report, which accuses Treasury of overpaying for assets to the tune of $78 billion: Valuation of the transactions … Continue reading

Posted in bailouts | 1 Comment

Sachs’s Nationalization Idea

Jeff Sachs has a slightly peculiar idea for nationalizing banks, which he calls "contingent nationalisation". As best I can work out, it involves the government buying up toxic assets at par, and then selling them off over the course of … Continue reading

Posted in bailouts, banking | 2 Comments

Nationalizing Bank Losses

Tyler Cowen has a new argument against nationalization: Say that banks are in the red by $2 trillion for ever and all eternity. Taking over the banks simply means that the government picks up these losses as owner. Government ownership … Continue reading

Posted in bailouts, banking | 1 Comment