Results tagged “treasurydepartment”

Sure, the State Department cleared the NY Philharmonic to go to Cuba next month, but the donors who helped fund that trip weren't allowed, so it's all off! The Philharmonic said, "We have been told by officials at the Treasury Department that the current regulations governing travel to Cuba does not provide for this particular category of people"—rich patrons of the arts—"Without (their) support, this trip is not financially possible."

The government has approved 10 banks to repay TARP bailout funds, which would total about $68 billion. While the Treasury Department has not indicated which banks are included, the NY Times reports they are American Express, Bank of New York Mellon, the BB&T Corporation, Capital One Financial, JPMorgan Chase, the State Street Corporation, US Bancorp, Morgan Stanley, Northern Trust, and Goldman Sachs. Many of the banks passed the stress test (Northern Trust is a holding company and did not have to undergo the stress test. Bloomberg News notes this will "reduc[e]officials’ authority to intervene in everything from lending and hiring strategies to compensation policies." Treasury Secretary Timothy Geithner said, "These repayments are an encouraging sign of financial repair, but we still have work to do."

Treasury Secretary Timothy Geithner will announce details of the Obama administration's plan to deal with bank's toxic assets—it's like Treasury Department Superfunding! According to the NY Times, "The plan relies on private investors to team with the government to relieve banks of assets tied to loans and mortgage-linked securities of unknown value. There have been virtually no buyers of these assets because of their uncertain risk." The government wants to use up to $100 billion in TARP funds plus hundreds of billions from private investors to buy up $500 billion in bad assets; the treasury said the program could "expand to $1 trillion over time." Apparently U.S. stocks are poised for a "strong rally" in advance of the announcement (world stocks are up), but let's remember that the last time Geither made a big announcement, the stock market freaked out.

The United State government has agreed to increase its stake in embattled Citigroup from 8% to 36%. The NY Times explains, "Under the deal, Citibank said that it would offer to exchange common stock for up to $27.5 billion of its existing preferred securities and trust preferred securities at a conversion price of $3.25 a share, a 32 percent premium over Thursday’s closing price. The government will match this exchange up to a maximum of $25 billion of its preferred stock at the same price. In its statement, the Treasury Department said the dollar-for-dollar match was intended to strengthen Citigroup’s capital base." Still, Citi's shares plunged—Canaccord Adams managing director of U.S. equity trading David Rovelli told Bloomberg TV, "It’s just unbelievable. The government is making up the rules as they go. A continued breakup is probably in the cards." And former SEC chairman Arthur Levitt added, “This is another step toward creeping nationalization." Currently, the Dow is close to 7,000 points.

Treasury Secretary designate Timothy Geithner, under prodding from the Senate Finance Committee, said that he misfiled his taxes between 2001 and 2003—resulting in unpaid taxes discovered only during his vetting last fall—while using Turbo Tax. Geithner was quick to say, "I want to say I take full responsibility" in taking the fault (and not blame the computer software), and the Washington Post was amused, "The man charged with leading this nation out of recession -- an architect of the $700 billion financial rescue package -- hunched over a computer, surrounded by stacks of paper, trying to figure out his taxes, just like the 18 million other working stiffs who bought TurboTax last year." Geithner's snafu stems from freelance work at the IMF—he thought he was an employee while the IMF just considered him a contractor and did not take out his taxes. At any rate, he's expected to be confirmed next week.

Stocks were expected to fall this morning, as Asian markets were significantly down (Nikkei -6%, Hong Kong -13%, Shanghai -6%) as are the European markets, but U.S. new home sales rose unexpectedly in September by 2.7%, so stocks declined less severely than thought for this morning. Bloomberg News said that sales were "propelled by a drop in prices ahead of the latest turmoil in financial markets."

After stocks continued to slide yesterday amid worries over the credit crisis, the Treasury Department is thinking about buying stakes in U.S. banks to restore confidence. According to the NY Times, "Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it."

Congressional leaders and the White House agree on a bailout plan that will aid troubled financial firms, but now it must be passed by Congress. The Wall Street Journal reports the bill, which would "effectively nationalize an array of mortgages and securities backed by them -- instruments whose deteriorating value has clogged the nation's financial system," was finished late yesterday, and Speaker of the House Nancy Pelosi says it's "frozen"--as in no more changes.

Sources say that the federal government may take over mortgage companies Fannie Mae and Freddie Mac as soon as this weekend. The Wall Street Journal says this "would represent perhaps the most significant intervention by the government in the financial industry since the housing bust touched off turmoil in the credit markets a little more than a year ago." The NY Times adds the move, which includes the feds standing behind Freddie's and Fannie's debt, "could cost taxpayers tens of billions of dollars and make any rescue among the largest in the nation’s history." Earlier this year, the feds bailed out Bear Stearns by orchestrating its sale to JP Morgan Chase.

Documentary filmmaker Michael Moore and his distributor, Harvey Weinstein, appeared at a press conference yesterday to question why the government is investigating Moore's trip to Cuba for his upcoming film, Sicko. The film, which premiered at Cannes and is scheduled to open in a few weeks, questions the American health care system and, at one point, Moore takes three September 11 rescue workers to Cuba to get health care treatment for them there.

Former Mayor Rudy Giuliani's presidential machinations are getting more serious. He's planning a $2,100 per ticket fundraiser at the Marriott Marquis on December 19 and he's hired Dubya's CFO from his 2004 campaign.

The U.S. Treasury Department is trying once again to combat counterfeiters by changing the design of the twenty-dollar bill. Now, hues of peach and blue will be incorporated. Luckily, it's still a sexy picture of President Jackson. You can expect to see this in the fall.