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NEWS
April 19, 2012 | By Jon Healey
Detroit native Mitt Romney has long contended that the U.S. automobile industry would be better off had the federal government not bailed out General Motors and Chrysler. In particular, he argued in 2008 and again in February (while campaigning in Michigan's Republican primary) that the companies should have restructured themselves without the feds' involvement through a "managed bankruptcy" process. But that ignores a crucial fact: Companies that are broke require money to keep operating, even while under the protection of a Bankruptcy Court.
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OPINION
March 7, 2014 | Tatiana R. Zaharchenko and Patrick Breslin, Tatiana R. Zaharchenko, a former a law professor in Ukraine, is a lawyer on environmental matters and government reform, working mainly in Eastern Europe. Patrick Breslin, a writer and photographer, has written extensively on grass-roots development in Latin America
Like the reigns of many corrupt leaders, that of Viktor Yanukovich ended in farce. But there's nothing farcical about Ukraine's situation. Russian troops have taken over its Crimean region, and President Vladimir Putin this week said that Russia "reserves the right to use all means at our disposal to protect" Russian-speakers in Ukraine. Meanwhile, the country Yanukovich left behind is broke and close to default after he, his family and his cronies looted it during the three years he was president.
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BUSINESS
July 10, 2012 | By Andrew Tangel
NEW YORK -- Stocks gained in early trading Tuesday after European leaders agreed on bailout terms for Spain's troubled banking system. The Dow Jones industrial average gained 43 points, or 0.3%, to 12,779 shortly after the opening bell. The Standard and Poor's 500 index rose 7 points, or 0.5%, to 1,359. The Nasdaq was up 8 points, or 0.3%, to 2,939. Major European stock indexes were up about 1% or more. Spain's costs of borrowing eased, meanwhile. The country's 10-year bond yield slid to about 6.7%, down from about 7% Monday.
CALIFORNIA | LOCAL
February 28, 2014 | By Seema Mehta
A Republican who wants to be California's governor is staking his bid on having run the $700-billion federal bank bailout - even as GOP candidates across the nation distance themselves from the highly unpopular program. As he courts voters, former U. S. Treasury official Neel Kashkari rarely mentions the Troubled Assets Relief Program (TARP) by name. But he says that it staved off another Great Depression, and he cites his work on the program as proof of what he could do in Sacramento.
OPINION
November 27, 2008
Re "America's muscle: Detroit steel," Opinion, Nov. 23 Every time the bill comes to renew my subscription to The Times, I wonder if this is the time to cancel -- then I come across an article such as Ellen Slezak's, and I renew. The story she tells reminds us of the importance of the auto industry to families across America and the decent future for them that the bailout will help ensure. I support the bailout, although I feel it must come with new ideas. For example, the bailout should subsidize buying up American-made SUVs and replacing them with high-gas-mileage, low-pollution station wagons -- possibly hybrids.
WORLD
March 22, 2013 | By Anthee Carassava
ATHENS -- Racing against time and short on choices, Cyprus on Friday moved to vote on yet another bailout formula its government cobbled together to secure a $13-billion international lifeline that will keep its weak banks afloat and avert a devastating default. Failure to produce a viable bailout scheme by Monday will force the European Central Bank, according to an ultimatum it issued earlier this week, to stop funneling billions of dollars into Cyprus' cash-strapped financial system, leaving the island nation to fend for itself.
CALIFORNIA | LOCAL
August 13, 2013 | By Paige St. John
SACRAMENTO -- Gov. Jerry Brown already has begun talking to legislative leaders about the amount of money that would be needed to bail the state out of its prison crowding crisis. The governor has a court-imposed Dec. 31 deadline to find room for some 9,600 inmates or face the prospect of early releases. The corrections department currently is discussing paying private prison operators, counties and cities to take those inmates, at prices that range from $38 to $65 per inmate per day. At the moment, Brown also will have to find funding and authority to continue sending inmates already contracted to go to out-of-state prisons owned by Corrections Corp.
NEWS
February 16, 2012 | By Seema Mehta
On the same day that General Motors reported record profits, Mitt Romney stumped in Michigan, reiterating his opposition to the federal government bailout that many credit with saving GM and Chrysler. Romney told the Detroit News' editorial board Thursday that rather than the federal government lending the two companies $80 billion, GM and Chrysler should have entered bankruptcy six months earlier and the federal government should have offered loan guarantees. "I would have never allowed the auto industry to disappear," Romney told the paper.
WORLD
March 28, 2013 | By Emily Alpert
As banks opened their doors Thursday for the first time in nearly two weeks in Cyprus, the odyssey over the nation's financial crisis and ensuing bailout took its newest turn. If you haven't followed the economic drama in this Mediterranean island, here's a recap of how Cyprus came to preoccupy the Eurozone. June 25, 2012: Cyprus seeks a bailou t after suffering heavy losses. Its banking sector was hit by the economic crisis in Greece; Cypriot banks had made loans to Greek borrowers that were worth 160% of the island's gross domestic product, according to the International Monetary Fund . Nov. 23: The European Union reports progress toward a deal with Cyprus.
BUSINESS
June 8, 2012 | By Andrew Tangel
Stocks edged lower on Wall Street after investors heard no hints of further Federal Reserve actions in Chairman Ben Bernanke's testimony before Congress. Europe's debt crisis continued to rattle financial markets. The Financial Times reported Spain could request a bank bailout Saturday from the European Union. The Dow Jones industrial average was down 44 points, or 0.4%, to 12,417 shortly after the opening bell. The broader Standard & Poor's 500 index was down 5 points, or 0.3%, to 1,311.
BUSINESS
February 21, 2014 | By Jim Puzzanghera
WASHINGTON -- Fannie Mae posted its eighth straight profitable quarter in the final three months of last year and will send the federal government $7.2 billion, pushing its total dividend payments above the cost of the 2008 bailout for the first time, the company said Friday. Boosted by the housing market rebound, the mortgage giant posted $6.5 billion in profit in the fourth quarter of 2013 and a record $84 billion for the year. The dividend payment, based on those profits, will bring the total amount Fannie Mae has paid to the Treasury Department to $121.1 billion.
OPINION
January 31, 2014 | By The Times editorial board
Ever since the housing market collapse, nothing stokes the flames of public outrage quite like the phrase "government bailout. " It's become the condemnation of choice for both parties when faced with a policy they don't like. Lately, conservatives have been arguing that an obscure provision of the 2010 healthcare law would provide a taxpayer bailout to insurance companies that don't charge high enough premiums. Funny, but they didn't have a problem with that concept when it was used to help launch Medicare's prescription drug program under (Republican)
BUSINESS
January 16, 2014 | By E. Scott Reckard
The wind-down of the bailout continues. The Obama administration has decided to sell about $3 billion of the government's common stock holdings in Ally Financial Inc., a former General Motors Corp. lending arm propped up with taxpayer assistance during the financial crisis. That would bring the recovery from Ally to $15.3 billion, or 89%, of the $17.2 billion bailout provided by the Troubled Asset Relief Program, the Treasury Department said Thursday in announcing its plan. QUIZ: big business news of 2014 The deal would involve unloading 410,000 shares of Ally common stock at $7,375 apiece in a private offering, the department said.
BUSINESS
November 21, 2013 | By Jim Puzzanghera
WASHINGTON - The Treasury Department said Thursday it has sold an additional 70.2-million shares of General Motors Co. stock acquired as part of the automaker's bailout and expects to unload the rest by the end of the year. The sale of the final 31.1-million shares would close the books on GM's $51-billion rescue. The Obama administration expects to post a $10-billion loss on the bailout, although officials have said they never expected to turn a profit and that saving the auto industry was crucial to the economic recovery.  The latest sale of GM stock took place over about two months and reduced the government's ownership stake to 2.2%.
CALIFORNIA | LOCAL
November 18, 2013 | By Seema Mehta
Meeting with half a dozen formerly homeless people at an Orange County nonprofit, Neel Kashkari told them what has been an open secret in California political circles: The former U.S. Treasury Department official and banker is weighing a run for governor next year. "I'm considering running for governor of California, and the biggest issues I'm focused on [are] the economy, creating more jobs so people can work, get a decent job, afford a place to live and education," Kashkari said at the Illumination Foundation in Stanton last week.
BUSINESS
November 15, 2013 | By Jim Puzzanghera
WASHINGTON -- Moody's Investor Services on Friday said it cut the credit ratings for four big U.S. banks because of reduced chances the government would bail them out in a future crisis. The ratings for bank holding company debt of JP Morgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and Bank of New York Mellon was lowered by one notch, Moody's said. Despite the reduction, the banks' debt remained at investment grade. The reductions came after Moody's reviewed the ratings of the eight large U.S. bank holding companies as federal regulators put in place rules called for in the 2010 Dodd-Frank financial reform law designed to prevent future bailouts Under the rules, federal officials would have the power to seize and shut down a major bank on the brink of bankruptcy if its failure threatened the financial system.
BUSINESS
October 16, 2012 | By Jerry Hirsch
Could the auto industry determine the next president? The different views of the $85-billion auto industry bailout by the contenders for the White House are sure to influence voters in a swing state such as Ohio, where making cars represents a huge chunk of the state's economy. The recovering industry makes for "a good story to tell," especially for the Democrats and President Obama, who pushed the bailout, said Thilo Koslowski, an automotive analyst at research firm Gartner Inc. when the latest auto sales numbers came out earlier this month.
BUSINESS
November 7, 2013 | By Jim Puzzanghera
WASHINGTON - More than five years after the government seized Fannie Mae and Freddie Mac, taxpayers are close to breaking even on the controversial bailouts of the mortgage finance giants. The companies said Thursday that they would make another set of large dividend payments to the Treasury after reporting third-quarter profits, continuing a turnaround fueled by the housing market rebound. Combined, the companies have received about $187.5 billion in bailout money, though none since early 2012.
BUSINESS
October 8, 2013 | E. Scott Reckard
Five years after Washington bailed out more than 700 banks, the money has become a burden for more than 100 community banks that can't seem to repay it. About a dozen of those are in California, and they are facing increasing pressure as the federal government looks to close out the Troubled Asset Relief Program, or TARP. The banks will soon face a big increase in the annual dividend they must pay the government on its investment - to 9% from 5%. Some of the banks will have to sell out or bring in new shareholders - who might demand control of the institution in exchange for the cash infusion.
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