December 11, 2012 |
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.
January 9, 2013 |
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 23, 2010 |
Treasury Secretary Timothy F. Geithner spoke with more than 30 business and political leaders on the day American International Group Inc. was bailed out by the U.S. government, his phone logs show. At the time, Geithner ran the Federal Reserve Bank of New York, which helped organize AIG's rescue, on Sept. 16, 2008, when the calls took place. The logs were submitted by the New York Fed in response to a subpoena last week from the House Oversight and Government Reform Committee. Among the chief executives Geithner spoke with by phone were Berkshire Hathaway Inc.'s Warren Buffett, JPMorgan Chase & Co.'s Jamie Dimon, Goldman Sachs Group Inc.'s Lloyd Blankfein and Citigroup Inc.'s Vikram Pandit.
March 22, 2013 |
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 |
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.
September 28, 2013 |
WASHINGTON - The Federal Housing Administration dramatically expanded its role after the subprime market collapsed, but at the expense of its own finances. Now, the government agency will get a first-ever bailout of $1.7 billion. In a letter Friday to Congress, the agency's head said it needed money to stabilize its long-term finances and cover potential losses on the huge volume of low-down-payment mortgages it insured from 2007 to 2009. It's the first time the 79-year-old FHA - created during the Great Depression to keep home lending flowing - will require taxpayer funding.
January 8, 2013 |
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.
July 15, 2011 |
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.
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.
August 8, 2012 |
WASHINGTON - Buoyed by rising home prices, Fannie Mae on Wednesday posted a $5.1-billion profit from April through June and said that for the second straight quarter it would not need any more bailout money. The improving real estate market was the main driver of one of the most profitable quarters ever by Fannie, the huge housing finance company that was seized by the government in 2008 along with sister firm Freddie Mac as they neared bankruptcy because of the collapse of the housing bubble.