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FDIC Chairman Sheila C. Bair Statement on the Legacy Loans Program

FDIC Chairman Sheila C. Bair said, “It has been clear for some time that troubled loans and securities have depressed market perceptions of banks and impeded new lending. Difficult market conditions have complicated efforts to sell these troubled assets because potential buyers have not had access to financing. The Legacy Loans Program aligns the interests of the government with private […]

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Press Release: Public Private Partnership Investment Program

Press Release: Public Private Partnership Investment Program

Below are the just-released details on the U.S. Treasury Public Private Partnership Investment Program. I will have commentary shortly in a separate post. However, before I do, I am posting the details here for your reference.

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Links: 2009-03-23

Toxic assets plan is big White House test – FT.com US Treasury toxic asset plan: factbox – Telegraph MidEast fund takes 9% stake in Daimler – FT.com AIG starts makeover, changes sign at NY office – Reuters It’s time to give up our blind faith in economic growth – Guardian Technology Five Best Web Browsers – lifehacker Make Your Home […]

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Two largest wholesale credit unions seized

From the Wall Street Journal: In the latest dramatic move by federal authorities to prop up the nation’s banking system, regulators late Friday seized control of the two largest wholesale credit unions in the U.S. after finding that their losses on mortgage-related securities were even larger than previously thought. U.S. Central Corporate Federal Credit Union and Western Corporate Federal Credit […]

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Is Obama considering nationalisation?

You may have seen Ed’s post “Gillian Tett: Washington is talking to Swedes about banking crisis solutions” a week back about how the U.S. government was getting ready to talk to Swedish officials regarding the banking crisis. This is a very important development and I have a lot more to provide below on the issue as it pertains to today’s events and Japan’s crisis early this decade.

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Drug suspects show Ben Bernanke how to drop helicopter money

You probably saw this one already, but a pair of suspected narcotics traffickers threw gads of money from their car window while being pursued by the Drug Enforcement Agency (DEA) in a car chase in San Diego. Basically, it was free money for any other drivers willing to risk death picking up the money on the highway. Many people, including […]

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Links: 2009-03-20

Here are the main links. Others can be found in the news feed (also available via RSS). Enjoy. No Return to Normal – James K. Galbraith A Sign of the Times: A.I.G. Sues Countrywide – Deal Book Mexico Treasury Seeks Measure Favoring Citigroup – Deal Book “A statement from the Mexican Treasury Department said it will ask lawmakers to change […]

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Steve Coll talks Pakistan with Charlie Rose

If you have noticed, Pakistan is in a real state of crisis right now. Given the fact that this country is both unstable and possesses nuclear weapons courtesy of A. Q. Khan, it stands to reason that everyone should be interested. The fact that it has a border with Afghanistan only makes things that much more urgent.

In this video on Charlie Rose, Steve Coll of the “New Yorker” discusses Pakistan with Joe Klein, Hasain Haqqani, Director of the Center for International Relations and Professor at Boston University, and Imtiaz Ali.

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Congressional response to AIG is mindless

As understandable as the Congressional response to the AIG bonuses was, the reality is that this does create a number of disturbing precedents. We have a stupid Congress mindlessly lashing out to compensate for its own complicity in political corruption (Congress has long been a major recipient of Wall Street largesse, including AIG) It all goes back to Tom Ferguson’s […]

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Mexico: Central bank to cut today

This analysis comes via Brown Brothers Harriman (I have bolded a few lines): Mexico’s central bank is widely expected to cut its overnight rate by 25 bp today. That would bring it to 7.25%. Last month it delivered a 25 bp rate cut too. The market had expected a 50 bp cut and punished the peso in disappointment. However, the […]

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Has the increase in U.S. jobless claims peaked?

Has the increase in U.S. jobless claims peaked?

Yesterday, the U.S. Department of Labor released its Unemployment Insurance Weekly Claims Report. I see the data as mostly good. The headline seasonally-adjusted numbers were 646,000 initial claims and 5.47 million continuing claims, both of which are extremely high – 5.47 million is a record. However, the real story is in the unadjusted numbers end of seasonal factors. And, this is becoming a better story every week.

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It’s the writedowns, stupid

Today, I want to make the case for seeing writedowns as central to this global downturn. To do so, we need to rewind and compare what is going on today with what we have experienced in the past. Drawing on this comparison, I can demonstrate that traditional policy tools are likely to be ineffective today. Moreover, the present course of action will also prove inadequate. Other more aggressive means must be applied in order to ensure a more stable banking system and a path to recovery. Likely remedies will include a reorganization of large swathes of the U.S. banking system.

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