June 19, 2009 |
A Treasury Department challenge to the authority of government bailout watchdog Neil M. Barofsky came just as he had begun a sensitive investigation of the department's role in approving bonuses to executives of insurance giant AIG, sources said Thursday. Department lawyers had sent a message to Barofsky, special inspector general for the Troubled Asset Relief Program, suggesting that lawyer-client privilege could restrict some of his inquiries.
June 18, 2009 |
He was appointed with fanfare in December as public watchdog over the government's multibillion-dollar bailout of the nation's financial system. But now Neil Barofsky, inspector general of the Troubled Asset Relief Program, is embroiled in a dispute with the Obama administration that delayed one recent inquiry and sparked questions about his ability to investigate without interference. The Treasury Department contends that Barofsky does not have a completely independent role.
June 18, 2009 |
Ten big banks made good Wednesday on their promises to repay $68 billion in government capital received under the Troubled Asset Relief Program. JPMorgan Chase & Co. said it paid the Treasury $25 billion, Morgan Stanley returned $10 billion, Goldman Sachs Group Inc. repaid $10 billion, U.S. Bancorp returned $6.6 billion, Capital One Financial Corp. gave back $3.6 billion, and American Express Co. sent back $3.4 billion. The other banks returning the federal money were BB&T Corp.
June 3, 2009 |
Several large banks may get government approval to repay billions of dollars in federal aid next week after completing a series of tests to prove they can stand without crutches. JPMorgan Chase & Co., Goldman Sachs Group Inc. and American Express Co. are among the most likely candidates to get the Treasury Department's blessing, according to financial analysts. Together they owe the government $38.4 billion. Other banks bidding for approval include credit card giant Capital One Financial Corp.
May 20, 2009 |
Allstate Corp. became the second insurer to turn down a bailout from the Treasury Department after being approved for government funding. The Northbrook, Ill., company was among six insurers granted preliminary approval Friday to receive capital infusions under the government's Troubled Asset Relief Program. Ameriprise Financial Inc. turned down bailout funding that same day.
May 6, 2009 |
The parent of City National Bank on Tuesday added its name to the list of financial companies that want to exit the industry's strained partnership with Uncle Sam. Beverly Hills-based City National Corp. said it raised about $100 million by selling new shares to investors, and intended to put the money toward repayment of $400 million in government capital it received in November. "We'd like to repay the whole thing," said Russell Goldsmith, the company's chief executive.
March 14, 2009 |
A growing number of healthy bank chains across the country are bailing out of the $700-billion federal banking bailout program, saying it has tarnished the reputation of banks that took the money and tangled them in unwieldy regulations. When the program began last fall, it was billed by then-Treasury Secretary Henry M. Paulson as an investment in strong banks to make them even stronger.
February 25, 2009 |
To paraphrase the Beatles, they should have known better. The Chicago bank Northern Trust, that is, which decided to roll on last week with a round of lavish festivities pegged to its annual golf tournament at the Riviera Country Club in Pacific Palisades. Northern Trust Corp. is a 130-year-old bank that serves mostly an upper-crust clientele -- it claims 20% of the Forbes 400 list among its customers, which may be enough capital on the hoof to pay for the whole bank bailout.
February 24, 2009 |
American International Group Inc., the insurer bailed out by the U.S. government, may restructure its rescue package for the second time in four months as the recession forces down the value of the firm's assets. AIG may announce that it is converting the government's preferred shares into common stock to relieve pressure on the New York firm's liquidity, a person familiar with the situation said. AIG pays a 10% dividend on preferred stock but none on common shares.
February 23, 2009 |
This week, Washington gets another chance to prove to Wall Street it means business. Investors are expecting details on the Treasury Department's plans to fix the financial industry. The questions they want answered: How the government will decide which banks are healthy enough to be saved, how their toxic assets will be priced and how officials will persuade private investors to buy them. The Obama administration has yet to galvanize confidence on Wall Street.