YOU ARE HERE: LAT HomeCollectionsBailout


March 22, 2013 | By Anthee Carassava, Los Angeles Times
ATHENS - Racing against time and short on choices, Cyprus lawmakers on Friday made an abrupt about-face, agreeing to emergency legislation as part of yet another bailout formula cobbled together to secure a $13-billion lifeline to keep its weak banks afloat and avert a devastating default. After 25 members of Cyprus' parliament abstained from voting, two voted against the plan and one walked out, 26 lawmakers approved the creation of a national solidarity fund to manage state assets, including public and private pension funds.
September 12, 2012 | By Kate Connolly, Los Angeles Times
BERLIN - Germany's supreme court ruled Wednesday that the nation can participate in a permanent European bailout fund, giving the go-ahead for a key element of European leaders' strategy for combating the continent's long-running debt crisis. The legal decision served to avert an international economic crisis that was likely to erupt if Germany was constitutionally blocked from participating in the $640-billion fund known as the European Stability Mechanism, or ESM. At the same time, the court placed conditions on Germany's role in the fund, setting as a cap the government's agreed-upon contribution of 190 billion euros, or about $243 billion.
January 9, 2013 | By Jim Puzzanghera
WASHINGTON -- American International Group Inc., said Wednesday its board of directors decided not to sue the U.S. government over the bailout that rescued the company. News that the insurance giant was considering joining a shareholder suit led by former Chief Executive Maurice "Hank" Greenberg provoked outrage and undermined AIG's high-profile advertising campaign thanking America for the bailout. The company's board met Wednesday to listen to presentations about the federal suit by Greenberg's Starr International Co., which alleges the U.S. government shortchanged AIG shareholders in a bailout that at one point had taxpayers on the hook for more than $182 billion.
January 8, 2013 | By Jim Puzzanghera
WASHINGTON -- At the same time American International Group Inc. has been running high-profile ads thanking America for the bailout that saved the company, the insurance giant reportedly is considering joining a shareholder suit against the U.S. government for the rescue. The AIG board will meet Wednesday and could decide to join a $25-billion suit led by former chief executive Maurice "Hank" Greenberg, the New York Times reported . The suit by Greenberg's Starr International Co. alleges that the 2008 bailout of AIG by the Treasury Department and Federal Reserve Bank of New York in which the government received an 80% ownership stake in the company violated the rights of shareholders.
June 7, 2013 | By Jerry Hirsch
The U.S. Treasury's deal to sell 30 million shares of General Motors Co. will recoup taxpayers another $1 billion of the bailout money the government put into the automaker back in 2009. All told, taxpayers have recovered $32.5 billion of the $49.5 billion used to restructure the nation's biggest automaker.   The government also still owns 189 million GM shares, worth about $6.5 billion at the $34.41 share price that the Treasury got for the batch of stock it sold this week.
July 15, 2011 | By Andrew Seidman, Washington Bureau
Ron Bloom, the Obama administration's former auto czar who orchestrated the bailout of General Motors Corp. in 2008, responded on Thursday to claims from lawmakers that he lied to Congress. During a June 22 congressional hearing about the lasting implications of the bailout, Rep. Dan Burton (R-Ind.) asked Bloom if he ever said he "did this all for the unions," a statement that Burton said came from two independent accounts. Bloom, now assistant to the president for manufacturing policy, replied at the time that he was misquoted.
December 11, 2012 | By Jim Puzzanghera
WASHINGTON -- The Treasury Department said Tuesday it would raise $7.6 billion in the sale of its final shares of American International Group, ending the controversial bailout of the insurance giant with a $22.7-billion profit. The department agreed to sell its remaining 234 million shares in AIG, which represented 15.9% of the company, for $32.50 each. The sale in effect closes the books on a rescue that at its height had the government on the hook for more than $182 billion and owning 92% of the company.
May 20, 2010
The stirrings of better economic times have not reached state budgets and certainly haven't led to increased or even stable revenue for schools. And if the country is going to continue to invest in jobs as part of the economic stimulus, it only makes sense for some of those to be the jobs of teachers. We have strong reservations about the $23-billion Keep Our Educators Working Act, expected to reach the Senate floor by the beginning of next week, but those are outweighed by the alternative scenario in which millions of students around the country would lose their teachers.
December 19, 2012 | By Jerry Hirsch
The U.S. Treasury on Wednesday announced plans to liquidate its holdings in General Motors Co. over the next 15 months, starting with the sale of about 40% of its shares by the end of this month. GM will purchase 200 million of the 500 million shares held by the government at $27.50 a share, almost 8% above Tuesday's closing price but still barely more than half the price at which the government needs to sell if it is to break even. The Treasury Department said it intends to sell the remaining 300 million shares “through various means in an orderly fashion within the next 12-15 months, subject to market conditions.” Some of the sales could start as early as next month.
December 6, 2012 | By Jim Puzzanghera
WASHINGTON -- A top Obama administration official said Thursday that he could not guarantee that efforts to shore up a key government housing agency won't save it from needing a taxpayer bailout next year. But Housing and Urban Development Secretary Shaun Donovan cautioned senators worried about the increasingly precarious finances of the Federal Housing Administration that making hasty changes to its operations could endanger the housing recovery. Sharp revisions to FHA's standards for insuring mortgages -- often for first-time, lower income home buyers -- could dampen the recovery and lead to more foreclosures that further reduce the size of the fund the agency uses to cover its losses.  "We are seeing a recovery, but it is still fragile," Donovan told the Senate Banking Committee.
Los Angeles Times Articles