Results tagged “bankcrisis”

The $350 billion second half of the federal government bank bailout—aka TARP (Troubled Asset Relief Program)—funding was released by the Senate. According to the Wall Street Jounral, President-elect Barack Obama intends to "spend $50 billion to $100 billion on a 'sweeping' foreclosure-prevention effort" as well as "impose tougher restrictions on banks that receive government aid, including requirements on banks to lend money, increased restrictions on executive compensation and curtailed dividend payments for some firms."

A day after Washington Mutual fell, Wachoiva began talks with Citigroup and other possible suitors, including Wells Fargo and Banco Santander of Spain, about a possible merger. The Wall Street Journal reports that "Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition," but the mortgage crisis has put pressure on many banks. Shares have fallen 78% in the Charlotte, NC-based company over the past year, and the NY Times says Wachovia holds $120 billion of risky option adjustable-rate mortgages, which allow borrowers "the option of skipping part of their payments and adding that debt to the principal of the loan."