Treasury

As part of a settlement with federal regulators, 13 lenders this week are starting to pay out $3.6 billion to more than 4 million troubled borrowers whose homes were in foreclosure proceedings in 2009 and 2010. A chart released Tuesday by the regulators showed that most of the borrowers would receive $300, the minimum allowed under the settlement terms. The maximum of $125,000 would go to 1,135 borrowers whose homes were seized while they were serving in the military or who were current on their payments.

Beyoncé and Jay-Z's anniversary trip to Havana, Cuba, was approved by the U.S. government, Treasury officials have said. The recording artists, Beyoncé Knowles Carter and husband Shawn Carter, headed to the island nation last week for their five-year wedding anniversary, raising official eyebrows as the U.S. has had a half-century-old trade embargo on the communist island that prohibits visits solely for the sake of tourism. Once images of the couple visiting Old Havana surfaced, Sen. Marco Rubio (R-Fla.)

WASHINGTON - President Obama forced out the head of the IRS on Wednesday, seeking to restore the public's faith in the tax agency while asserting a measure of control over a rapidly growing political problem. Making a hastily scheduled statement at the White House, Obama denounced the targeting of conservative groups by the Internal Revenue Service as "inexcusable" and pledged to "do everything in my power to make sure nothing like this ever happens again. " "Americans are right to be angry about it, and I am angry about it," he said.

WASHINGTON -- Treasury Secretary Jacob J. Lew plans to pressure Chinese leaders to crack down on cyber attacks against U.S. targets when he visits Beijing this week on his first foreign trip since being confirmed. A senior Obama administration official told the Financial Times that one focus of Lew's talks in China will be to press the country to "take serious steps to investigate and put a stop to these activities. " In addition to cyber-security, Lew will discuss intellectual property enforcement and export financing with Chinese leaders, the Financial Times said.

Apple Inc. may not have more money than God. But it's got more cash than Uncle Sam. As the government struggled to reach an agreement on raising the debt ceiling, the U.S. Treasury's cash balance fell to $74 billion this week. That's less than the $76 billion that Apple now has in cash. It's not terribly likely that the government will ask Apple Chief Executive Steve Jobs for help. But it wouldn't be the first time the government has asked for a bailout from an industry mogul.

WASHINGTON -- The Treasury Department said Monday that it would sell its remaining ownership stake in insurance giant American International Group, effectively ending one of the largest bailouts of the financial crisis and turning a profit for taxpayers. The sale of the Treasury's remaining 234 million shares -- 15.9% of the company -- would add to the $15.1 billion in profit the government already has made on the bailout. The Treasury would still hold warrants in AIG after the stock sale.

Sen. Rand Paul is calling for a vote of no confidence in Treasury Secretary Timothy F. Geithner. The "tea party" champion on Wednesday introduced a resolution declaring that Congress and the American people have lost confidence in Geithner. Paul, a Republican from Kentucky, cited the Treasury secretary's handling of the economy, the rising national debt and the Standard & Poor's downgrade of the nation's credit rating. Paul's resolution is an unusual and largely symbolic move.

Treasury Secretary Timothy F. Geithner says he's "confident" he won't be serving a second term, even if President Obama is reelected. "He's not going to ask me to stay on, I'm pretty confident," Geithner told Bloomberg Television on Wednesday. "I'm confident he'll be president. But I'm also confident he's going to have the privilege of having another secretary of the Treasury. " Cabinet secretaries are rarely expected to serve a second term, and Geithner is no exception. As the last remaining member of Obama's original economic team, Geithner has fought back rumors of his departure before.   In August, after a brutal fight with Congress over raising the debt limit, many speculated that the secretary was preparing to resign.

Despite its already-record borrowing binge this year, the U.S. Treasury demonstrated today that it's having no trouble selling more debt. Investors flocked to the government's sale of a record $43 billion in two-year Treasury notes, resulting in the strongest demand at any two-year note sale since September 2007. The notes were sold at a yield of 1.03%, about as expected. The Treasury said it got $3.23 in bids for every $1 in notes offered, up from an average of $2.79 per $1 in the last eight two-year note auctions.

Treasury bond futures retreated sharply for the third consecutive session on Thursday, reflecting the belief that the economy may be picking up a little steam. Bonds lost a full point or more during each of the sessions and the September delivery settled Thursday at 96 22/32 points, down 1 point. In some other markets, soybeans, wheat and cattle futures declined while hogs and corn moved higher.

When the Edward H. Ackerman American Legion Post 397 in Hellertown closed in 2008, the public story was that the aging building had become too expensive to maintain. In a sense, that was true, but one of the reasons it had become too expensive was because the post's treasurer had embezzled tens of thousands of dollars, diverting membership dues into his own pocket and forging signatures to cash checks. The post also owed back federal payroll taxes. The sad details of that episode don't need to be recounted.

WASHINGTON -- The Senate on Wednesday confirmed Jacob J. Lew as Treasury secretary, allowing the longtime budget expert to take office as President Obama deals with looming automatic federal spending cuts. Lew, 57, was approved by a 71-26 vote. He succeeds Timothy F. Geithner, who stepped down in January after four years in the job. Lew brings different expertise to the job than Geithner, who had a deep background dealing with financial markets and Wall Street. For his second Treasury secretary, Obama chose a person with a long history of crafting budgets and helping negotiate spending deals with Republicans in Congress.

WASHINGTON -- A Senate committee is expected to vote to confirm Jacob J. Lew's nomination to be Treasury secretary on Tuesday, setting the stage for his confirmation by the full Senate in the coming days. Lew, the former White House chief of staff, would succeed Timothy F. Geithner and would be a key player in budget negotiations between President Obama and congressional Republicans as automatic federal spending cuts are set to begin on Friday. Senate Finance Committee Chairman Max Baucus (D-Mont.)

WASHINGTON -- The Treasury Department has begun selling the rest of its stake in General Motors Co. as the government tries to end its bailout of the automaker in a little more than a year. Last month, the Treasury sold about $156.4 million worth of its stock, according to the most recent report to Congress on the $700-billion financial crisis bailout fund. The sale is the first step toward liquidating the government's remaining holdings in GM, which was announced in December.

NEW YORK - Turns out the Federal Reserve's gold is secure and a bit more pure than previously thought - or so the government says. Auditors spent weeks last year in a vault five stories beneath Manhattan counting, weighing and drilling small holes into gold bars owned by the U.S. Treasury. It was the first time the Treasury's inspector general had audited the department's gold held by the Federal Reserve Bank of New York, which has captured the imagination of Hollywood as well as government skeptics.

There are richer and more important races ahead for Treasury Bill, a 3-year-old son of Lemon Drop Kid who will be making his stakes debut Sunday in the $150,000 San Vicente Stakes at Santa Anita. Trainer Ron Ellis has high aspirations for a horse that likes to race from far back and come charging down the stretch. That's why Ellis was surprised that Treasury Bill won a 61/2-furlong maiden sprint in his second race on Jan. 27. It's in two-turn races that Treasury Bill figures to be at his best, so Ellis isn't going to put a lot of pressure into winning Sunday's seven-furlong stakes that has just six entrants, including three horses trained by Bob Baffert - Belvin, War Academy and Shakin It Up. This time of year is about getting Treasury Bill more racing experience in preparation for the big 3-year-old races in March and April on the road to the ultimate goal of an appearance in the Kentucky Derby on the first Saturday in May. "I've liked him all along," Ellis said.

President Reagan will nominate George D. Gould of New York, chairman and chief executive officer of Madison Resources Inc., as undersecretary of the Treasury, the White House announced Friday.

The Treasury said the average yield on $5.75 billion of seven-year notes was up from the last seven-year note issue of 11.67% on Jan. 4. The yield was the highest since the 12.34% figure of Oct. 23, 1984. The Treasury said it received bids of $16.01 billion ranging from 11.82% to 11.85%. The New York Federal Reserve submitted tenders of $14.1 billion, of which $5.14 billion was accepted.

WASHINGTON - Republican senators hit Treasury secretary nominee Jacob J. Lew with tough questions about his tenure as a top executive at Citigroup Inc. in the years leading up to the financial crisis, but the former White House chief of staff appeared to avoid any major controversy that could derail his confirmation. "Frankly, I think you've done really well," Sen. Orrin Hatch (R-Utah), one of the most aggressive questioners, told Lew at the end of his three-hour confirmation hearing Wednesday.