December 3, 2009 |
Bank of America Corp. has received government permission to pay back $45 billion in taxpayer aid that helped the company survive the financial crisis, a step that would terminate the federal pay restrictions that have inhibited its search for a new chief. Although several banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc., have repaid capital handed out by the government last fall, Bank of America would be the first recipient of so-called extraordinary federal assistance to repay taxpayers completely.
November 10, 2009 |
The Federal Reserve today said that GMAC is the only major bank that will need additional bailout money after it was unable to raise needed capital on its own. The Fed led the effort to put the 19 largest U.S. bank holding companies through so-called stress tests this spring to determine if they could withstand worse-than-expected economic conditions. The tests determined that 10 of the banks, including Bank of America Corp. and Wells Fargo & Co., needed to raise a combined $75 billion by today.
October 22, 2009 |
President Obama, looking to boost lending to small business, will start using some of the leftover federal bailout funds to shore up smaller community banks and induce them to offer credit to firms he called the "backbone of the American economy." Smaller financial institutions are in greater need of capital to grow and expand, whereas the country's large banks have moved past their need for what's left of the $700-billion Troubled Asset Relief Program, Obama said Thursday at a family-owned storage business in suburban Washington.
October 20, 2009 |
Even as the nation's biggest financial firms were struggling and the federal government was spending hundreds of billions to save many of them, the companies as a group were boosting the perks and benefits they pay their chief executives. The firms, which account for more $350 billion in federal bailout funds, increased these perks and benefits 4% on average last year, according to an analysis of corporate disclosures filed in recent months. Some chief executives, such as Kenneth D. Lewis of Bank of America Corp.
October 1, 2009 |
The Treasury Department's long-awaited attempt to deal with toxic mortgage securities cleared another hurdle as two of the nine fund managers selected to lead public-private partnerships to purchase the assets raised at least $500 million each. Invesco Ltd. and Los Angeles-based TCW Group Inc. have completed their initial fundraising from private investors, bringing in a total of $1.13 billion in capital commitments as part of the Public-Private Investment Program, the Treasury said Wednesday.
September 25, 2009 |
The Treasury is unlikely to get back the full amount of money lent under the Troubled Asset Relief Program despite a recent spate of repayments from large banks, warned the program's watchdog. The program "played a significant role" in rescuing the financial system from a meltdown, Neil Barofsky, special inspector general for TARP, testified before the Senate Banking Committee on Thursday. But it was "extremely unlikely that the taxpayer will see a full return on its TARP investment," according to his prepared testimony.
September 2, 2009 |
No big bank wants to be the last one in the TARP pit. On Tuesday, as Bank of America Corp. was reported to be working on a plan to repay part of its federal capital injection under the Troubled Asset Relief Program, Wells Fargo & Co. Chief Executive John Stumpf was on TV promising that Wells would be returning its TARP money soon. "We will pay it back shortly," Stumpf said in an interview with Bloomberg TV, referring to $25 billion in capital received last fall under TARP. He didn't give a date, saying repayment had to be worked out with the Federal Reserve.
August 27, 2009 |
An inspector general's audit has found no wrongdoing in the U.S. Treasury Department's $400-million investment of bailout funds in Los Angeles-based City National Bank, according to people familiar with the report. The audit, which is expected to be made public as soon as today, was launched late last year by Treasury Department Inspector General Eric Thorson amid concerns over how and why banks were chosen to receive bailout money. Its focus was whether Treasury officials properly followed the rules established in October when the controversial $250-billion banking bailout was announced as the largest component of the $700-billion federal Troubled Asset Relief Program.
August 4, 2009 |
Bank of America Corp. has agreed to pay $33 million to settle allegations that it misled shareholders by indicating that Merrill Lynch & Co. would not pay year-end bonuses -- when in fact the bank had already approved up to $5.8 billion in payments. Federal regulators, who brought the suit against BofA, said the episode occurred as shareholders were considering the bank's proposed acquisition of Merrill Lynch last year.
July 23, 2009 |
As banks begin paying back their federal bailout money, some lawmakers and government watchdogs worry the Obama administration isn't driving a hard-enough bargain on the one part of the investment that could generate a profit for taxpayers. Banks that received money from the $700-billion Troubled Asset Relief Program were required to supply the government with warrants to buy future stock at a set price. Congress wanted taxpayers to benefit if the banks became financially healthier.