EDWIDGE DANTICAT: 15 years after her Nobel, Toni Morrison continues to inspire Oct 8, 2008
At its center is Florens, a girl who is exchanged for a bad debt. Like all of Morrison's heroines, she is not quite what she appears and displays a powerful will coupled with an endearing vulnerability that continuously leaves the reader both exuberant and heartbroken. (Fresno Bee -- Opinion)
EU reaches agreement on tackling bank crisis Oct 8, 2008
European Union governments have avoided copying the U.S. with a massive bailout to buy up bad debt from banks and help unfreeze lending. The EU is hampered in taking unified action because while it boasts a single currency in 15 of its 27 member states nations it has no legal powers to intervene in financial markets. (MSNBC -- Business)
Will Britain's rescue plan work? Oct 8, 2008
Will Britain's rescue plan work. BOLD MEASURES: Britain's Prime Minister Gordon Brown listened Wednesday as his finance minister Alistair Darling explained a new plan to shore up the financial system. (Christian Science Monitor)
Credit marks still tight as stocks plunge Oct 8, 2008
Many financial institutions already saddled with bad debt could take another hit if they sold insurance contracts known as credit default swaps against Fannie Mae and Freddie Mac bond defaults. An auction was held Monday to determine how much the sellers of those contracts will have to pay back buyers, now that the mortgage financiers are under the control of the U.S. government. (Wahpeton Daily News, ND)
Stocks take another dive Oct 8, 2008
But write-downs of bad debt at Bank of America are a reminder to investors that troubles within the financial sector remain, according to Kim Caughey, equity research analyst at Fort Pitt Capital Group. "I think we have weeks of volatility ahead of us," she said. (Pocatello Idaho State Journal, ID)
California, States Seek Inclusion in U.S. Fed's Commercial Paper Backstop Oct 8, 2008
Congress last week authorized the Treasury to buy $700 billion of bad debt from banks, and European governments including the U.K., Spain and Germany undertook rescues of their own to keep the financial system's problems from exacerbating a world economy that the International Monetary Fund said yesterday is headed for a ``major downturn'' next year. Spending Cuts. (Bloomberg -- US)
JEFF EDELSTEIN COLUMN: Jeff's conspiracy of financial relativity: We'll be OK Oct 8, 2008
And the storm will pass when the world players who are more-or-less sitting out this crisis, like India and China, swoop in and start buying up all this "bad debt" from their European pals. Think of America in this whole thing as the guy at the poker table who, no matter how much he loses, can still go into his pocket for another $20. (The Trentonian, NJ)
A Record Fall on Wall St. Oct 7, 2008
along with Treasury Secretary Jr., had urged Congress to pass legislation that would allow the government to buy bad debt such as mortgage loans from financial firms. CONTINUED 1. (Washington Post -- Technology)
President signs bailout bill Oct 7, 2008
The plan allows the federal government to buy bad debt from banks, which lawmakers hope will facilitate new lending to businesses and individuals. Banks have been reluctant to loan money to each other and others during the credit crisis, and some banks have failed or been taken over by others. (Brewton Standard, AL)
Europe shaken Oct 7, 2008
The country's second-biggest commercial property lender, Hypo Real Estate, was threatened with collapse last week after incurring large amounts of bad debt. The government attempted a bail-out, only for it to collapse on Sunday after a banking consortium withdrew support for the deal. (BBC News -- Europe)
Our views: Rescuing the rescue Oct 7, 2008
But it had been significantly improved since the White House and Treasury Secretary Henry Paulson asked for a $700 billion blank check to buy bad debt from failing companies in the hopes of freeing up credit and stabilizing the economy. Important congressional oversight had been added. (Florida Today)
Economy, energy big issues for Rogers Oct 7, 2008
Rogers voted in favor of the $700 billion rescue plan a plan to take over bad debt from financial institutions. That was clearly the most intense vote I ve had to cast, Rogers said. (Alexander City Outlook, AL)
Cut may be part of a world series Oct 7, 2008
Moves of that magnitude underline that the posturing and procrastination that caused a one-week delay in the passage of the US's $US700 billion bad debt buy-out package was extremely damaging. By the time it was voted in, the crisis had spread to Euroland, reaching a new order of magnitude. (Sydney Morning Herald -- Business)
Portland-area clinics busy as economy dives Oct 7, 2008
That works out to 52,000 more bad debt than the clinics assumed in the same four months of 2007. It s dicey, and we don t have really deep reserves we can turn to, Munoz said. (Ontario Argus Observer, OR)
ECB tries to soothe volatile markets Oct 7, 2008
Credit markets barely budged Monday as governments around the world scrambled to bolster failing banks and investors waited for details on how the U.S. Treasury plans to buy up to $700 billion of bad debt from banks which aims to unfreeze tight lending. Stocks in the U.S., Europe and Asia spiraled downward, with the Dow falling below 10,000 for the first time since 2004. (San Diego Union-Tribune -- Business)
A look at world market activity Oct 7, 2008
The stocks fell amid worries about global fallout from the U.S. bad debt crisis as investors caught up on recent news following a weeklong national holiday. China's securities regulator plans to allow margin trading on a trial basis, but this news was overshadowed by concern over the effectiveness of the U.S. bailout plan. (San Diego Union-Tribune -- Business)
Military: Army officials cautious about future funding Oct 7, 2008
That size, combined with the publicity surrounding the passage last week of the plan to shore up the ailing financial industry by buying its bad debt, has lead some analysts to predict defense spending as a ripe target for any future cutbacks ... Steve Kosiak of the Center for Strategic and Budgetary Assessments said the bailout had unclear implications for defense spending, given that its structure calls for the government to eventually sell the bad debt at a potential profit. (San Diego Union-Tribune)
Oil Hits 8-Month Low Under $90 A Barrel Oct 6, 2008
The drop came as amid growing investor anxiety that the U.S. bad debt crisis is enveloping Europe. Germany announced Sunday a bailout package totaling 50 billion euros ($69 billion) for Hypo Real Estate, the country's second-biggest commercial property lender, part of a scramble by European governments to save failing banks. (CBS News -- Iraq)
We've got about 30 years of mistakes that need fixing Oct 6, 2008
We don't know how much we will pay to buy up the bad debt. What motivation does a financial institution have to sell its paper at 50 cents on the dollar, which may be its market value. (Anchorage Daily News)
Bailout funds start to flow Oct 6, 2008
The bill, H.R. 1424 all 451 pages of it gives Treasury the power to spend up to 700 billion to buy bad debt from banks, credit unions, thrifts and insurance companies. The hope is that by shoring up their books, trust will be restored to the financial system, banks will begin lending again, and it will start the economy on the road to recovery. (Chippewa Falls Chippewa Herald, WI)
After previous feast, a credit famine Oct 6, 2008
By purchasing $700 billion of bad debt from banks, the government would theoretically free those institutions to resume lending, improving companies' access to cash. Some businesses appear unaffected by the crisis, continuing their normal banking relationships and even buying back their own stock and making acquisitions. (Albany Times Union)
Looks and smells like Socialism Oct 6, 2008
This bailout would be like me compiling the bad debt at this newspaper during the last five years and taking those accounts to Congressman John Carter's office in Round Rock and asking him to write me a check to cover my stupidity. Then when Carter writes me a government check, I'm asking him to send you, the taxpayer, a bill for a stupid businessman's mistakes. (Cedar Park Hill Country News Weekender, TX)
Register to have your voice heard in November Oct 6, 2008
It remains too early to assess the impact of last week's votes in Congress to allocate $700 billion in taxpayers' money to a financial rescue plan designed to inject some stability in a credit market left reeling by bad debt associated with subprime mortgages. But it already may be a safe bet that one outcome will be an increase in voter registration in advance of the Nov. 4 general election. (Athens Banner-Herald)
Heat on RBA for big rates cut Oct 6, 2008
"Now we have to see the package kicking in and the US Government buying back the bad debt," said AMP Capital Investors chief economist Shane Oliver. "Within a few weeks it should be noticeable whether it is working or not. "Things will start to stabilise, but of course it is not going to head off the problems we have right now with the economic downturn globally. (The Age)
Nikkei Dives to 4-Yr Low amid Economic, Financial Woes Oct 6, 2008
"Everyone knows that public fund injections into ailing financial firms are needed" to relieve capital shortages that are likely to result from bad debt disposal, said Masanobu Takahashi, chief strategist at Ichiyoshi Securities Co. "But the market also knows that such a measure is unlikely come before the launch of a new U.S. administration.". Toshihiko Matsuno, deputy equity general manager at SMBC Friend Securities Co., said the biggest source of investor concern now is rapidly deteriorating... (JCN Network, Japan)
We’ll bail out the Fed Oct 6, 2008
I had assured Treasury officials that, were they looking to purchase billions and billions in bad debt, they could just write me a big fat check right here. They declined, so now our kitchen has begun to resemble the control room in The China Syndrome, when all the lights are blinking and no one knows for sure what s going to happen next. (Corvallis Gazette Times, OR)
Stocks in Europe, Asia plunge on fears for world economy Oct 6, 2008
The drop came as world stock markets plunged amid growing investor anxiety that the U.S. bad debt crisis is enveloping Europe. INVESTING TOOLS. (USA Today -- Money)
Rescue Legislation Contains Palliatives, No Cure Oct 6, 2008
In the meantime, more banks will be taken over by regulators or forced into shotgun marriages with stronger institutions as they succumb to bad debt and reduced value of mortgage securities. There will also be more ``hot money'' runs as depositors move funds to safe institutions with high yields. (Bloomberg -- Columnists)
Main St. worried Oct 6, 2008
Hilton, who works part-time at AT&T at the Arizona Center in Phoenix, said he suspects that the government buying bad debt may not save the economy. "It'll just get us into more trouble.". (AZCentral -- News)
The end of the American order Oct 6, 2008
That's nothing compared with the $700-billion Mr. Paulson got from Congress yesterday to purge the financial system of the bad debt at the root of the credit crisis. With governments saving failing banks in Europe, stock markets plunging in China and exports slowing in Brazil, the world is in no mood to take economic lessons from the U.S. government. (Globe and Mail -- Business)
Wells Fargo insists on taking over Wachovia Oct 6, 2008
WASHINGTON, Sept. 20 (Xinhua) -- The Bush administration is planning to buy 700 billion dollars of bad debt from financial institutions in efforts to deal with the financial crisis. Backgrounder: Wall Street's Five Investment Banks Collapse. (Xinhuanet, China)
Sarkozy: Global Response To Crisis Needed Oct 5, 2008
On Friday, U.S. Congress approved a $700 billion government plan to buy up bad debt from banks and help unfreeze lending, which U.S. President George W. Bush quickly signed into law. The head of the International Monetary Fund, who met with Sarkozy before the summit, said the crisis represented a "trial by fire" for the euro, Europe's 10-year-old common currency - and would require a quick, coordinated response. (CBS News)
'Europe will support weak banks' Oct 5, 2008
The rescue was the biggest in German history and came after HRE was sucked into the financial turmoil through its exposure to massive bad debt. HRE said in a statement that a white knight consortium of German banks had "refused to provide liquidity lines" and that it was seeking new measures. (India Times, India)
Another European bank falters Oct 5, 2008
Hypo Real Estate, which has large amounts of bad debt, has suffered from the credit squeeze in international markets. The bank said a consortium of German financial institutions involved in a government-led rescue plan pulled out of the negotiations after refusing to come up with nearly 36bn euros ($50bn; 28bn) for a bail-out. (BBC News)
President Bush Signs Bailout Bill Oct 5, 2008
Among many features, the measure would allow the Treasury Department to buy up bad debt from various lending institutions. Many members of the House voted for the bill even though they said it was not very attractive to them and their constituents back home. (WOKR13 Rochester)
Next for bailout: determining details Oct 5, 2008
The bill, H.R. 1424 all 451 pages of it gives Treasury the power to spend up to $700 billion to buy bad debt from banks, credit unions, thrifts and insurance companies. The hope is that by shoring up their books, trust will be restored to the financial system, banks will begin lending again, and the economy will be on the road to recovery. (Honolulu Advertiser)
PARIS AUTO SHOW: For European automakers, a cloudy future Oct 5, 2008
BMW, the world's largest premium carmaker, raised its provisions for risks stemming from falling used car prices and bad debt to 695 million, or $963. 1 million, at the end of the first half. (International Herald Tribune)
EU leaders make vows in face of crisis Oct 5, 2008
A day earlier, U.S. legislators approved a $700 billion government plan to buy up bad debt from banks and help unfreeze lending. The four leaders French President Nicolas Sarkozy, British Prime Minister Gordon Brown, German Chancellor Angela Merkel and Italian Premier Silvio Berlusconi vowed to ensure the soundness and stability of Europe's banking and financial system, but they gave few specifics. (USA Today -- Money)
Wells Fargo agrees to buy Wachovia, Citi objects Oct 5, 2008
The failure of the government's proposed $700 billion bailout for financial institutions Monday cast doubt on whether Citigroup would be able to rid itself of some of Wachovia's bad debt. The proposal would have allowed Citigroup to sell Wachovia's distressed mortgage-related assets to the government for a profit. (San Diego Union-Tribune -- Business)
Citigroup May Have To Walk Away Oct 5, 2008
The changes allow a buyer to deduct, without limits, loan losses and bad debt. Wachovia has successfully fended off unwanted deals in the past. (Forbes -- Business)
EU Leaders Short on Specific Solutions to Crisis Oct 5, 2008
On Friday, U.S. Congress approved a $700 billion government plan to buy up bad debt from banks and help unfreeze lending, which President Bush quickly signed into law. The head of the International Monetary Fund, who met with Sarkozy before the summit, said the crisis represented a "trial by fire" for the euro, Europe's 10-year-old common currency _ and would require a quick, coordinated response. (Newsmax)
The mother of all golden parachutes Oct 4, 2008
Unfortunately, bad debt rarely becomes good debt. Throwing good money after bad money is not a sound business practice. (Asia Times Online)
Nunes statement on passage of Wall Street bailout package Oct 4, 2008
It should not buy bad debt from Wall Street. Wall Street doesn't need a bailout but our nation's banks and lending institutions do need support. (Fresno Bee -- Opinion)
Reasons behind US House's approval of bailout plan 4 days after ... Oct 4, 2008
The Bush administration hopes that the rescue plan, designed to address the root problem of the financial crisis -- bad debt on the balance sheet of financial institutions -- will help achieve the goal. While advocates hail the bailout plan as the best hope to save the financial system and revive the economy, some economists have warned people not to expect immediate results. (Xinhua)
Looks and smells like Socialism Oct 4, 2008
This bailout would be like me compiling the bad debt at this newspaper during the last five years and taking those accounts to Congressman John Carter's office in Round Rock and asking him to write me a check to cover my stupidity. Then when Carter writes me a government check, I'm asking him to send you, the taxpayer, a bill for a stupid businessman's mistakes. (Cedar Park Hill Country News Weekender, TX)
Allina will cut 250+ jobs Oct 4, 2008
Allina s budget has been squeezed by rising bad debt, as well as a decline in value of its own investments, company spokesman David Kanihan said. However, Allina plans to invest in a new model of care, which will focus on preventative treatment, he said. (Twin Cities Business Journal, MN)
Wells Fargo buys Wachovia for $15.1-billion Oct 4, 2008
The failure of the government's proposed $700-billion bailout for financial institutions Monday afternoon cast doubt on whether Citigroup would be able to rid itself of some of Wachovia's bad debt. While the proposal would have prevented most banks from profiting on the sale of troubled assets to the government, an exception would have been made for assets acquired in a merger or buyout. (Globe and Mail)
3 from Pennsylvania switch votes to 'yea' Oct 4, 2008
"What I don't support is putting the taxpayer on the hook for $700 billion of bad debt," he said. Locally, Reps. (Pittsburgh Post-Gazette, PA)
Valley politicians react to bailout Oct 4, 2008
Nunes said he wanted the bailout money to go directly to struggling banks, rather than toward buying "bad debt from Wall Street.". The main thrust of the plan is for the U.S. government to buy up rotten mortgage-backed securities held by investment firms. (Hanford Sentinal, CA)
We’ll bail out the Fed Oct 4, 2008
I had assured Treasury officials that, were they looking to purchase billions and billions in bad debt, they could just write me a big fat check right here. They declined, so now our kitchen has begun to resemble the control room in The China Syndrome, when all the lights are blinking and no one knows for sure what s going to happen next. (Corvallis Gazette Times, OR)
Financial bailout plan wins House approval, Bush's signature into law same day Oct 4, 2008
" WASHINGTON, Sept. 20 (Xinhua) -- The Bush administration is planning to buy 700 billion dollars of bad debt from financial institutions in efforts to deal with the financial crisis. Backgrounder: Wall Street's Five Investment Banks Collapse WASHINGTON, Sept. 25 (Xinhua) -- JPMorgan Chase & Co. Inc. on Thursday night acquired the banking operations of Washington Mutual Bank (WaMu), the largest thrift in the United States, in a transaction facilitated by the Federal Deposit Insurance Corporation... (Xinhuanet, China)
Officialsclose in on bail- out deal Oct 4, 2008
A plan to let the government take an ownership stake in troubled companies as part of the rescue, rather than just buying bad debt, also was under intense negotiation. A bipartisan meeting was set for Thursday to begin drafting a compromise, which top Democrats said they hoped could pass within days. (Ontario Argus Observer, OR)
Banks likely to get short-term boost from bailout Oct 4, 2008
That will provide two benefits; the government will remove some of the bad debt from balance sheets and banks will now have an approximation for the value of those assets still held, White said. That in turn will make banks more comfortable lending to each other and consumers again, he added. (San Diego Union-Tribune -- Business)
Markets steady as Motlanthe holds on to 'what is working' Oct 4, 2008
The package, which would remove bad debt from the markets, is designed to restore confidence and allow the interbank system to operate normally. Global stock market performance was mixed, with benchmark indices falling about 1 percent in Sydney and Tokyo. (Business Report, South Africa)
US bailout package shows threats to banking system Oct 4, 2008
8 trillion) plan to rescue US financial institutions is an indication of the dimensions of bad debt in that country, and of the threat to the banking system there and in a number of other countries. Recent events have put potential banking failures high on the policy agenda. (Business Report, South Africa)
One-On-One With Sarah Palin Oct 3, 2008
Next, Couric asked about the $700 billion government bailout of bad debt - and whether she supports it. Palin: I'm all about the position that America is in and that we have to look at a $700 billion bailout. (CBS News)
Wall Street rescue deal stalemate Oct 3, 2008
The proposal would have seen the government buy bad debts from US banks to prevent more of them collapsing ... Financial markets are gummed up because banks do not know exactly how much bad debt they hold and are therefore reluctant to lend to businesses, consumers and each other ... Instead, they want a government-backed insurance policy for the huge amounts of bad debt built up by US banks. (BBC News -- Americas)
Indiana congressmen vote 6-3 against bailout bill Oct 3, 2008
We must also ensure that we are not inadvertently purchasing bad debt from China or other countries. Rep. (Rensselaer Republican, IN)
US eco worries drive down stocks Oct 3, 2008
Investor confidence ebbed and commodity prices tumbled amid the bleak economic picture painted by the latest U.S. data, despite the U.S. Senate's approv 00004000 al late on Wednesday of a revised $700 billion plan to bail out banks holding bad debt. The deteriorating economic outlook led investors to dump gold and other precious metals as the dollar firmed. (India Times)
CHANGING LANES: Wall Street blame game misses the point Oct 3, 2008
The chief goal of Washington s round the clock negotiations was and is to keep credit alive by buying up bad debt. On Monday, Congress rejected a $700 billion bailout plan. (Hingham Journal, MA)
Top Tips Oct 3, 2008
Good debt vs. bad debt and how to manage it all. Tips for choosing stock and bond funds. (CNN -- Money / Personal Finance)
Ohio Court Rules for McCain-Palin on Absentee Ballots Oct 3, 2008
OUR BAIL OUT CRISIS WAS CAUSED BY A HANDFUL OF CORRUPT CONGRESSMEN AND A HANDFUL OF EQUALLY CORRUPT FANNIE MAE OFFICIALS. THEY BOUGHT UP OVER $ 7 TRILLION IN BAD DEBT JUST SO THEY COULD PAD THE BOOKS AND COLLECT HUGE SALARY BONUSES. THIS LEFT THE AMERICAN TAXPAYER ON THE HOOK FOR HUNDREDS OF BILLIONS OR PERHAPS EVEN TRILLIONS.. HERE ARE THE THREE VIDEOS THOSE CORRUPT FANNIE MAE OFFICIALS AST FIVE CORRUPT GOVERNMENT OFFICIALS DON'T WANT THE AMERICAN PEOPLE TO SEE. (Washington Post)
MCCAIN'S TRUMP CARD Oct 3, 2008
But it makes all the difference in the world politically if this task is accomplished by buying bad debt or by lending the bankers the money to cover their current losses while they keep their bad debts on their books and by insuring them against future losses ... Purchase of bad debt with tax money is not. (New York Post -- Opinions)
Our views: Rescuing the rescue Oct 3, 2008
But it had been significantly improved since the White House and Treasury Secretary Henry Paulson asked for a $700 billion blank check to buy bad debt from failing companies in the hopes of freeing up credit and stabilizing the economy. Important congressional oversight had been added. (Florida Today)
Abraxas Petroleum Corporation Oct 3, 2008
The purchase of this bad debt would have supplied fresh capital to lending institutions. The bill would have authorized the Treasury Department to modify the terms of troubled loans in order to help American families keep their houses. (San Antonio Business Journal, TX)
