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U.S. Banks Refuse to Detail How They’re Spending Federal Bailout Money
After receiving hundreds of billions of dollars in taxpayer-funded federal bailout money, the biggest U.S. banks say they can’t track how that money is being spent.
Some of the banks are outright refusing to discuss the matter, a new study has found.
"We have not disclosed that to the public. We’re declining to," Thomas Kelly, a spokesman for JP Morgan Chase & Co. (JPM) told The Associated Press, which surveyed 21 banks that received at least $1 billion in federal bailout money, and asked how that capital was being used. JP Morgan received a $25 billion infusion as part of the U.S. Treasury…
6Jan2009 | Money Morning | 0 comments | ContinuedProfiting From Bailout Mania
By Andrew Mickey, Q1 Publishing
It’s bailout season and every overleveraged business that failed to plan for a downturn is lining up for a share of the $700 billion pie.
General Electric (NYSE:GE) is about to come a bank with access to the Fed’s free money. American Express (NYSE:AXP) anticipates such rough times ahead, it plans to become a bank with access to the Federal Reserve’s deep pockets as well.
Over the weekend, Bloomberg reported Home Depot (NYSE:HD), Dow Chemical (NYSE:DOW), and Textron (NYSE:TXT) asked for the Fed to fund their ongoing operations by buying their second-tier commercial paper.
Even city governments are throwing their hats into…
18Nov2008 | Q1 Publishing | Comments Off | ContinuedDon’t Cry Over Spilled 1%
For the second time this year, on October 8th, the Fed announced an emergency rate cut.
A man named Jeffrey Staut, the chief strategist at Raymond James, stated shortly afterwards, “This better work. This is the last chance.”
In the two days following, the Dow shed more than 1,000 points. True, it gained it back the following week (undoubtedly a result of short profit-taking and bottom-hungry purchases rather than real interest), but it has since shrugged off that attempt at fixing a much larger problem and we’re back where we were on October 10th.
Seems like we’ve had a lot of “last…
24Oct2008 | Oxbury Research | Comments Off | ContinuedGold, Bonds, and Euros
Oct. 13(Bloomberg) – France, Germany, Spain, the Netherlands and Austria committed 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system
With this $1.8 trillion, and the most recent rumors of a $250 billion bank stake funded by the U.S. Treasury, G-7 economies will have flooded the global banking system with over $10 trillion worth of currency.
I’ve been a proclaimed dollar bear for some time, and this changes nothing except how we look at or define the title. Many consider a dollar bear market one where the…
14Oct2008 | Oxbury Research | Comments Off | ContinuedTHE REAL COST OF A FULL BAILOUT
A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.
As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely…
5Sep2008 | Daily Reckoning | Comments Off | Continued
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