- $200 billion for Fannie Mae [FNM 0.42 -0.061 (-12.68%) ] and Freddie Mac [FRE 0.26 --- UNCH (0) ]. The Treasury will inject up to $100 billion into each institution by purchasing preferred stock to shore up their capital as needed. The deal puts the two housing finance firms under government control.
- $300 billion for the Federal Housing Administration to refinance failing mortgage into new, reduced-principal loans with a federal guarantee, passed as part of a broad housing rescue bill.
- $4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.
- $85 billion loan for AIG [AIG 2.06 -1.69 (-45.07%) ], which would give the Federal government a 79.9 percent stake and avoid a bankruptcy filing for the embattled insurer. AIG management will be dismissed.
- At least $87 billion in repayments to JPMorgan Chase [JPM 38.12 -2.62 (-6.43%) ] for providing financing to underpin trades with units of bankrupt investment bank Lehman Brothers [LEH 0.11 -0.19 (-62.37%) ]. U.S. Treasury Secretary Henry Paulson said over the weekend he was adamant that public funds not be used to rescue the firm.
- $29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns in March. The Fed agreed to take $30 billion in questionable Bear assets as collateral, making JPMorgan liable for the first $1 billion in losses, while agreeing to shoulder any further losses.
- At least $200 billion of currently outstanding loans to banks issued through the Fed's Term Auction Facility, which was recently expanded to allow for longer loans of 84 days alongside the previous 28-day credits.
Ted Butler: Busting the Perfect Crime
30 minutes ago
8 comments:
Since the Fed is not part of the Treasury budget (meaning not taxpayer funded) we are not, as taxpayers, on the hook for the JP Morgan/Bear stuff or the AIG loan. That's all Fed balance sheet, not Treasury. Granted, the money supply considerations are effectively the same, but the Fed money is not taxpayer money.
How is fed money not taxpayer money? Unless the fed is producing goods and selling them for a profit, I don't understand how they aren't funded by taxpayer money as well. I'm open to an explanation.
I'm so mad at these bailouts, I could spit. When do I get to privitize some gain???
Fuck all you wall streeter locusts and your fancy cars and for making the housing market so expensive in NYC, that I will never be able to afford it.
When the Fed was founded, it was done so with capital from the member banks - not gov't money. The Fed earns loads of $$ in interest on the Treasury and other securities it owns. Most of that (whatever is above and beyond their operational needs) gets paid back to the Treasury.
The only problem here is that the Treasury is broke so any money they put in is borrowed on top of $9+ trillion already owed by you and me.
I'm waiting for SPX to test 1100, before I jump all long into this market.
I have a dumb question.
If this money is being injected in the form of stock buys, will these companies have to PAY back any of that money? Assuming the Fed starts slowly selling those stocks.
As of this morning you can add another $55 billion to the total!
http://news.yahoo.com/s/ap/20080918/ap_on_bi_ge/fed_credit_crisis
Post a Comment