This Old House
The U.S. government may turn a profit on its equity investment in Ally Financial, one of the major mortgage lenders to suspend foreclosures earlier this year amid reports of illegal documentation practices, The New York Times reports. The Times‘ analysis stems from a recent conversion of government preferred shares into common stock.
This Read More
Treasury Secretary Tim Geithner is just bursting with pride over the government’s bailout of the nation’s large banks during (and beyond) the 2008 financial crisis. By Mr. Geithner’s estimation, the intervention will only cost around 1 percent of U.S. GDP — pretty cheap as far as systemwide emergency procedures go. The New York Times Read More
The Treasury department announced last night that it has offloaded its remaining stake in humbled megabank Citigroup, freeing the troubled firm and the troubled taxpayer from one another’s grasp.
In fulfillment of a previously announced plan to sell off 2.4 billion Citi shares, the government said it raised $10.5 billion on Read More
Bailed-out insurance giant AIG raised $17.8 billion in an initial public offering of its AIA Asian life insurance business, Bloomberg reports. The IPO marked the largest capital raise in the history of the Hong Kong stock exchange — one of the rare moments in recent memory when AIG set any kind of record Read More
The U.S. Department of the Treasury has proven to be a pretty decent investor, as returns on its bailout of the financial-services industry have reached 8.2 percent over the past two years, Bloomberg reports.
The Troubled Asset Relief Program, an enduringly controversial emergency measure undertaken in late 2008 to save the financial system Read More
The U.S. Department of the Treasury, clearly not a long-term “buy and hold” investor of the Warren Buffett stripe, announced today that it plans to sell 1.5 billion shares of Citigroup, reducing what had at one point been a 7.7 billion-share, $45 billion stake in the company.
So far, taxpayers have gotten back Read More
Legal Matters, Firsts
The first-ever guilty plea to theft charges related to the Troubled Asset Relief Program is in. Reuters reports that Ex-Park Avenue Bank president Charles Antonucci today said he had taken $6.5 million from his employer and invested it for himself.
According to prosecutors, Antonucci also lied in his bank’s application for $11.2 million Read More
AIA, the Asia life-insurance unit of AIG, has pointed out a few potential downside to its business as it gets ready to raise an estimated $15 billion in an initial public offering on the Hong Kong exchange.
The AIG subsidiary said that its failure to reach a deal with insurance firm Prudential to sell the Read More
AIG and the government have reached an accord that will pave the way to disentangle the enormous insurer from the U.S. taxpayer, AIG said today. If all goes well, the Treasury Department can begin selling its stake in AIG to the private sector by the first quarter of 2011.
As expected, the plan Read More
AIG’s board is meeting today to discuss a way for the U.S. taxpayer to sell out of its investment in the troubled insurance company, Reuters reports.
Chairman Steve Miller said the company is hopeful that the government will make a profit from its roughly 80 percent stake in AIG. We already knew Read More