Posts Tagged ‘meltdown’

2 more banks go belly-up | CNN Money

Even though the interest rates banks pay are dropping, credit card interest rates are holding steady. Joseph Ridout of Consumer Action thinks the banks are trying to make up for their losses on subprime mortgages.
At the same time, banks are cracking down on existing customers by raising rates, dropping limits, and taking other draconian measures.
But [...]

AIG Was Spending Taxpayer Money Lobbying Against Mortgage Regulation | Consumerist

U.S. bank failures almost certain to rise in next year | CNN

This American Life has done two excellent shows to help ordinary folks like you and me understand the morass that is the U.S. economy.
A few months ago, in The Giant Pool of Money, Ira Glass and his crew explained the link between the housing crisis, the turmoil on Wall Street, subprime lending, and more. Follow [...]

“Dow suffers worst weekly performance since the week after 9/11 attacks, as investors remain fearful about the economy.” Stocks slump despite bank rescue | CNN Money

Too little, too late. Mortgage forgiven for woman who shot self | CNN

It’s official. Both houses of Congress have now passed what must surely be one of the most pork-laden bills in U.S. history: the Wall Street welfare bill of 2008. Or the bailout, whichever you like. House passes bailout | CNN

With all the campaign rhetoric flying around as Congress scrambles to rescue its biggest campaign contributors, it is easy to lose focus on the underlying problem: how did we reach a point where Wall Street fat cats determine the stability of our country and the economic prosperity of regular Americans?
When the stability of Wall Street [...]

Bailout bill fails; Dow plunges | CNN

In a deal brokered by the feds, Citigroup has agreed to acquire the majority of Wachovia, the latest bank to fail. From CNN:
Citigroup will acquire the banking operations of Wachovia for $2.2 billion in an all-stock deal, following much speculation over the weekend about the fate of the nation’s fourth-largest bank.
Citigroup buys Wachovia bank assets [...]

If you were a Washington Mutual customer yesterday, you are a Chase customer today. JP Morgan Chase bought up most of WaMu’s accounts in the biggest bank failure in history. Expect the stock market to limbo to new, lower heights today.
What will happen if you are a WaMu customer? Here is what Chase has to [...]

“The FDIC centers its approach on reducing monthly payments (principal, interest, taxes and insurance) to 38 percent of household income. It works with the first mortgage and with people who are delinquent or approaching a higher interest rate. It’s not charging fees or late charges.
On average, borrowers with modified loans are saving $430 a month, [...]

In depth analysis of the bailout plan: “The chairman of the Federal Reserve and the treasury secretary give Congress a gloomy prognosis for the economy, and propose a drastic remedy.” The doctor’s bill | The Economist (Thanks, Greg!)

Mortgages are moving around, not disappearing. Velshi: Please, keep paying your mortgage | CNN Money

Washington Mutual is selling many assets to JP Morgan and opening its doors to the Feds, who will take over what is left of the formerly-huge bank.
WaMu’s collapse is the biggest bank failure in history.

George W. Bush wants to use $700 billion of taxpayers’ dollars to give loans to corporations bogged down by bad debt. Most Americans seem to think this is a terrible idea. Should we, the American taxpayer, invest in the same zombie debt that is leading companies down the road to bankruptcy?
R. Kidd of North Carolina [...]

Rather than allow the economy to collapse under its own bloated weight, then allow it to rebuild itself after putting smarter regulations in place, the U.S. government plans to take on billions in bad debt in a massive bank bailout.
Here is the big joke that the government is telling to justify the plan:
The government would [...]

Bankruptcy, Takeovers, and Bailouts - Oh My! | Queercents