Inside these posts: Bailouts

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Fed to identify banks that drew emergency loans

The Federal Reserve plans to release documents on Thursday identifying financial companies that received Fed loans to survive the financial crisis. Get the full story »

Fed to release loan data after Supreme Court move

The Supreme Court has rejected banks' attempts to shield Federal Reserve lending data. (AP Photo/Manuel Balce Ceneta)

The U.S. Federal Reserve Board on Monday said it is preparing to release sensitive emergency lending data from the peak of the 2008 financial crisis after the Supreme Court rejected a bid by major banks to keep the information secret.

The justices, in a short written order, left in place a 2010 federal appeals court decision that ordered the Fed to identify commercial banks that received emergency loans from the central bank during the crisis. Shortly after the announcement, a Fed spokesman said the central bank would release the information, but didn’t provide a time frame. Get the full story »

Lawmakers oppose financial bailouts for states

Lawmakers of both parties expressed opposition Wednesday to having federal taxpayers help state and local governments cope with widespread budget problems, underscoring the impact that Washington’s crushing budget deficits are having on the appetite that Republicans and Democrats have for such aid.

“The era of the bailout is over,” Rep. Patrick McHenry, R-N.C., told a House hearing on the debt problems facing scores of states and municipalities around the country. Get the full story »

Wintrust, five others return $2.7B to Treasury

The Treasury Department says six banks have repaid government bailouts worth a combined $2.66 billion.

The banks are returning taxpayer money that they received in the aftermath of the 2008 financial crisis.

The banks that repaid their bailouts on Wednesday are Huntington Bancshares, First Horizon National Corp., Wintrust Financial Corp., Susquehanna Bancshares Inc., Heritage Financial Corp. and The Bank of Kentucky Financial Corp. Get the full story »

Banking giants leaned heavily on Fed in crisis

Goldman Sachs CEO Lloyd Blankfein testifies before a Senate investigative committee on Capitol Hill, April 27, 2010. (Jim Watson/AFP/Getty Images)

Goldman Sachs, Citigroup and other big U.S. banks repeatedly sought help from the Federal Reserve during the financial crisis, according to data on Wednesday that showed just how precarious their situation was at the time.

Many of the firms now boasting solid profits had to rely on funding from the U.S. central bank, which essentially acted as the glue holding the financial system together in the tumultuous months that followed the bankruptcy of Lehman Brothers in September 2008.

Citigroup, Morgan Stanley and Merrill Lynch, now part of Bank of America, were the three biggest recipients of the Fed’s key emergency lending programs, according to a Reuters analysis of Fed data. Goldman Sachs was sixth on the list, contradicting claims from its top executives that the firm always had plenty of cash on hand. Get the full story »

GM IPO raises $20.1 billion, biggest ever in U.S.

General Motors raised $20.1 billion in the biggest U.S. initial public offering in history, pricing the shares at the top of the proposed range in response to huge investor demand.

GM sold 478 common shares at $33 each, raising $15.77 billion, as well as $4.35 billion in preferred shares, more than the initially planned $4 billion. Get the full story »

AIG to get $22B in TARP funds for restructuring

The U.S. Treasury said on Monday that bailed-out insurer American International Group will draw up to $22 billion in Treasury funds to facilitate its restructuring and prepare for an eventual government exit. Get the full story »

AIG raises $37 billion to pay back U.S.

American International Group said Monday that it has raised nearly $37 billion as part of its plan to pay back the government’s multi-billion dollar bailout. Get the full story »

AIG lays out plan to repay taxpayers

American International Group Inc. laid out a plan on Thursday that sets the company on a path for an accelerated payback of taxpayer bailout money, but also increases the risk for the government.

The plan, which comes a little over two years after AIG was rescued from the brink of collapse, will see the Federal Reserve Bank of New York getting repaid in full and ending its involvement in AIG, leaving the company to deal with just the Treasury Department. Get the full story »

AIG could announce exit plan in days

American International Group is close to finalizing a plan for the U.S. government to sell its stake in the insurer and is hoping it will yield a profit for taxpayers who bailed out the company, Chairman Steve Miller said on Wednesday. Get the full story »

China state automaker may be eyeing GM stake

Chinese automaker and General Motors Co. partner SAIC said Monday it is paying close attention to GM’s upcoming stock sale, but gave no hint over whether it plans to take a stake itself.

GM executives in the U.S. and China likewise refused comment on reports that the automaker is in talks with its state-owned joint venture partner SAIC about buying a stake in the Detroit company through its initial public offering. Get the full story »

More US banks skip latest payment on bailout aid

More than 100 U.S. banks failed to pay an Aug. 16 dividend on bailout money they borrowed from the U.S. government, signaling that the number of banks struggling to meet obligations under the program is rising. Get the full story »

Fed gets 60-day delay on bailout disclosure

A U.S. appeals court granted the Federal Reserve a 60-day delay in implementing a ruling to force the central bank to reveal details of its emergency lending programs to banks during the financial crisis. Get the full story »

AIG to repay $4B in bailout loans

American International Group Inc. says it is repaying nearly $4 billion in federal bailout loans. The insurer said Monday it will pay back the taxpayer-funded loans with proceeds from a recently completed $4.4 billion debt sale at its aircraft leasing company, International Lease Finance Corp. Get the full story »

GM posts $1.3B profit ahead of IPO expected Friday

General Motors posted its second straight profitable quarter Thursday, putting it in position to move ahead with the sale of shares to the public that is needed to repay taxpayer assistance it received last year.

The No. 1 automaker in terms of U.S. sales reported earnings of $1.3 billion in the quarter after the payment of dividends on preferred shares held by the U.S. Treasury. That was a stark turnaround from the $12.9 billion it lost in the year-earlier period when the company went into bankruptcy. Get the full story »