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financing: Mortgage rates plummetting thanks to the Federal Reserve today... - 12/16/08 01:33 PM
Press Release
Release Date: December 16, 2008
For immediate release
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.
Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects … (1 comments)
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financing: With the news that the Fed will be buying huge amounts of... - 11/25/08 09:18 AM
mortgage backed securities, you can look for substantially lower rates. This is the move that may really spur home sales. Here is the press release from the Fed...
Press Release
Release Date: November 25, 2008
For release at 8:15 a.m. EST
The Federal Reserve announced on Tuesday that it will initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the Federal Home Loan Banks--and mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae. Spreads of rates on GSE debt and on GSE-guaranteed mortgages have widened appreciably … (1 comments)
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financing: Helping high school kids become financially educated... - 10/20/08 05:56 PM
Since this credit crisis, I have thought what we need is more education regarding financial matters. We, at the Manders Group, have decided that we would like to help high school kids in our area, state and region become more financially educated. We are donating a $200 scholarship to the "Secure Student" for any parent with a high school child that would like to enroll in this program. I have become very active in the Financial Education community and feel that this is a way to give back. Read about the program below and e-mail me(e-mail address on the right side of … (37 comments)
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financing: Mortgage rates since the bailout and why... - 10/17/08 01:47 PM
When the U.S. government first took conservatorship of Fannie and Freddie, rates started to plummet as bond purchasors decided that with the "implicit" guarantee for mortgage backed securities they would receive a better yield than comparable treasuries. This was true and investors flocked into MBS's, driving rates on a 30-year fixed to below 5.375 for a few days, but this trend has reversed and here is why...
From the Financial Times:
US mortgage rates have soared this week in an unexpected reaction to the latest Treasury financial rescue plan, which has prompted investors to buy bank debt and sell bonds backed … (3 comments)
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financing: Joint press release from the Treasury, Federal Reserve and FDIC... - 10/14/08 07:51 AM
Here is the latest announcement from the Treasury, Federal Reserve and FDIC...
Joint Press Release
Board of Governors of the Federal Reserve SystemU.S. Department of the TreasuryFederal Deposit Insurance CorporationFor release at 8:30 a.m. EDT October 14, 2008
Joint Statement by Treasury, Federal Reserve, and FDIC
Washington, DC-- The following statement was made by Treasury Secretary Henry M. Paulson, Jr, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila C. Bair:
Today we are taking decisive actions to protect the U.S. economy, to strengthen public confidence in our financial institutions, and to foster the robust functioning of our credit … (4 comments)
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financing: Fed works in concert with other Central Banks to ease rates... - 10/08/08 06:23 AM
Press Release
Release Date: October 8, 2008
For release at 7:00 a.m. EDT
Joint Statement by Central Banks
Throughout the current financial crisis, central banks have engaged in continuous close consultation and have cooperated in unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets.
Inflationary pressures have started to moderate in a number of countries, partly reflecting a marked decline in energy and other commodity prices. Inflation expectations are diminishing and remain anchored to price stability. The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further … (3 comments)
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financing: Fed to buy Commercial Paper... - 10/07/08 08:40 AM
Press Release
Release Date: October 7, 2008
For release at 9:00 a.m. EDT
The Federal Reserve Board on Tuesday announced the creation of the Commercial Paper Funding Facility (CPFF), a facility that will complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets. The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle (SPV) that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers. The Federal Reserve will provide financing to the SPV under the CPFF and will be secured by all of the … (2 comments)
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financing: Statement from Bernanke on bailout passage... - 10/03/08 01:06 PM
Press Release
Release Date: October 3, 2008
For immediate release
I applaud the action taken by the Congress. It demonstrates the government's commitment to do what it takes to support and strengthen our economy. The legislation is a critical step toward stabilizing our financial markets and ensuring an uninterrupted flow of credit to households and businesses.
The Federal Reserve will continue to work closely with the Treasury as it undertakes these new initiatives. We will continue to use all of the powers at our disposal to mitigate credit market disruptions and to foster a strong, vibrant economy.
… (5 comments)
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financing: FDIC could now have unlimited access to the Treasury... - 10/01/08 11:37 AM
From the WSJ: Revised Bill Lets FDIC Borrow Without Limits
The Senate financial market rescue bill would temporarily allow the Federal Deposit Insurance Corp. to borrow unlimited amounts of money from the Treasury Department in connection with the larger government deposit coverage that would extend until the end of next year.This is important because it would increase the backstop that the FDIC has to make sure that insured depositors can be repaid if their bank fails. full text of the revised bill.
This could really help preven the "run on the banks" that many are fearing and prepare the FDIC for … (3 comments)
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financing: Foreign leaders demanding bailout passage... - 10/01/08 08:15 AM
I never thought I would see the United States being led around by our nose by leaders of foreign governments because WE owed them so much money, but it has happened. I am concerned about the signal being sent...
From Bloomberg:
"European Central Bank President Jean- Claude Trichet said U.S. lawmakers must pass a $700 billion rescue package for banks to shore up confidence in the global financial system.
``It has to go, for the sake of the U.S. and for the sake of global finance,'' Trichet said in an interview in Frankfurt with Bloomberg Television late yesterday. ``I am confident, … (0 comments)
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financing: Link for the draft of bailout bill... - 09/28/08 04:02 PM
Alright guys, who is man/woman enough to read this article in its entirety? I have linked the pdf version and it is 106 pages. Good luck and please report back with Cliff Notes...
The Troubled Assets are initially limited to commercial and residential mortgages and instruments based on them. The Treasury has to go to Bernanke and get his consent and then write a note to Congress.
http://money.cnn.com/2008/09/28/news/pdf/index.htm
… (2 comments)
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financing: Deal reached on bailout bill... - 09/28/08 03:45 PM
There seems to be a deal reached on the bailout bill. The House Republicans were conspicuously missing from the press conferences early this morning, but many people associated think this deal can get done...
From the NY Times: Breakthrough Reached in Negotiations on Bailout
Congressional leaders and the Bush administration reached a tentative agreement early Sunday...The bill includes pay limits for some executives whose firms seek help, aides said. And it requires the government to use its new role as owner of distressed mortgage-backed securities to make more aggressive efforts to prevent home foreclosures. In some cases, the government would receive … (0 comments)
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financing: FDIC to seize WAMU and sell deposits to JPMorgan Chase... - 09/25/08 07:40 PM
Another wild night in the financial markets...
CNBC reports: FDIC to Seize WaMu and Sell Deposits to JPMorgan The Federal Deposit Insurance Corp will seize Washington Mutual and sell its deposits to JPMorgan Chase for an undisclosed sum, CNBC has learned. The deal is expected to be announced during a Thursday night conference call at 9:15 p.m. ET.
JPMorgan announces investor conference call:
JPMorgan Chase & Co. (NYSE: JPM) will host a conference call at 9:15 p.m. (Eastern Time) tonight, September 25, 2008. You may access the conference call by dialing 1-877-238-4671 (U.S. and Canada) / 1-719-785-5594 (International) - access code: … (2 comments)
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financing: Bernanke testimony before Congress today... - 09/24/08 09:47 AM
Here is the transcript of the speech Chairman Bernanke will give to Congress this afternoon. It was made public just a few minutes ago...
Testimony
Chairman Ben S. Bernanke
Economic outlook
Before the Joint Economic Committee, U.S. Congress
September 24, 2008
<!--RangePreExecu-->
Chairman Schumer, Vice Chair Maloney, Representative Saxton, and other members of the committee, I appreciate this opportunity to discuss recent developments in financial markets and to present an update on the economic situation. As you know, the U.S. economy continues to confront substantial challenges, including a weakening labor market and elevated inflation. Notably, stresses in financial markets have been … (6 comments)
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financing: Testimony from Bernanke on U.S. Financial Markets... - 09/23/08 07:01 AM
This is a very interesting read just made public. This is the speech Chairman Bernanke will give before the Committee on Banking, Housing and Urban Affairs...
The entire speech:
Chairman Ben S. Bernanke
U.S. financial markets
Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
September 23, 2008
<!--RangePreExecu-->
Chairman Dodd, Senator Shelby, and members of the Committee, I appreciate this opportunity to discuss recent developments in financial markets and the economy. As you know, the U.S. economy continues to confront substantial challenges, including a weakening labor market and elevated inflation. Notably, stresses in financial markets have been … (3 comments)
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financing: Goldman Sachs and Morgan Stanley abandon investment banking model... - 09/22/08 05:06 AM
they have petitioned the Fed to become bank holding companies which will oversee their balance sheets and give them limits on leverage and access to the discount window.
From the Fed press release:
Release Date: September 21, 2008
For release at 9:30 p.m. EDT
The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies.
To provide increased liquidity support to these firms as they transition to managing their funding within a bank holding company structure, the Federal Reserve Board authorized the Federal Reserve … (7 comments)
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financing: Bailout proposal... - 09/20/08 02:27 PM
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITYTO PURCHASE MORTGAGE-RELATED ASSETSSection 1. Short Title.This Act may be cited as ____________________.Sec. 2. Purchases of Mortgage-Related Assets.(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:(1) appointing such employees as may be required to carry out the authorities in this Act … (3 comments)
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financing: The Fed pumps money abroad... - 09/18/08 06:08 AM
In another historic move, the Federal government of the United States has pumped more money into foreign markets to attempt to help their markets "un-seize!"
Here is the release from the Fed:
For release at 3:00 a.m. EDTToday, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are announcing coordinated measures designed to address the continued elevated pressures in U.S. dollar short-term funding markets. These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the … (1 comments)
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financing: HR 6694 makes it through the sub-committee... - 09/17/08 05:08 AM
This is the first step toward resinstating seller-funded down-payment assistance in some form. It still has to make its way through the House and Senate.
From Marketwatch:
GAITHERSBURG, Md.,, Sept 16, 2008 /PRNewswire-USNewswire via COMTEX/ -- Bipartisan legislation would reauthorize downpayment assistance Ann Ashburn, President of AmeriDream, issued the following statement today after the House Financial Services Committee adopted H.R. 6694, legislation designed to reauthorize and reform downpayment assistance programs that the Bush Administration banned in July. "Today's committee vote was a positive step toward preserving downpayment assistance, but our work is far from over," said Ashburn. "Now more than ever, … (10 comments)
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financing: The Fed blinked...85 billion to AIG... - 09/16/08 06:53 PM
This should make the market go much higher until they realize that the problem isn't solved!
From CNBC:
American International Group will get an $85 billion bridge loan from the federal government in exchange for an 80 percent stake in itself, sources have told CNBC. Sources said the loan, which will allow AIG to avoid bankruptcy, will be secured and include incentives for quick asset-sales by AIG.Government warrants for most of AIG's equity will severely dilute existing shareholders.
Read the entire article here: http://www.cnbc.com/id/26743248
… (4 comments)
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