The Treasury Department is finally starting to warm markets up, but when it releases the final tab on the numerous bailout programs it has rolled out over the last two months, the U.S. government will need to do some heavy-duty borrowing of its own. Speaking at the Annual Meeting of the Securities Industry and Financial Markets Association Tuesday, Under Secretary for Domestic Finance Anthony Ryan said that "this year's financing needs will be unprecedented," when it comes to funding the Troubled Asset Relief Program, or TARP, and its other measures.
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The list of programs Ryan mentioned the fed is bankrolling includes:
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TARP-related programs and purchases;
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FDIC bank resolution measures;
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the FDIC's guarantee of short-term bank debt;
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the Money Market Mutual Fund Guarantee Program;
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the Asset-Backed Commercial Paper Money Market Liquidity Facility;
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the Commercial Paper Funding Facility;
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the Money Market Investor Funding Facility;
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the Agency MBS program;
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the student loan program;
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the GSE Senior Preferred Stock Agreement
Then came the bad news as Ryan went on to say that "all of these
initiatives are not factored into the $482 billion fiscal-year 2009 deficit
projected by the Office of Management and Budget in July's Mids-Session
review. The potential for deterioration in economic conditions given
the contraction in credit may also affect budget conditions this year."
Ryan said that the Treasury Department plans to "increase auction sizes
of our bills and coupon securities and continue to issue cash
management bills," and is considering issuing longer-dated debt, "including a possible reintroduction of the
three-year note, beginning in November 2008."
The 2008 deficit was already at a record-setting $455 billion. While there's no word yet on the final tab, budget deficits on the next administration's watch will likely be record setters too, as most of these programs are set to run well into next year. -
George White
See Under Secretary Ryan's comments
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Investors Demand Hearing, Investigation & Reversal of Washington Mutual Seizure
Houston, TX (MMD Newswire) October 27, 2008 -- Shareholders of Washington Mutual are demanding an investigation of the Office of Thrift Supervision's (OTS) confiscation of the Washington Mutual bank and their aiding and abetting of JP Morgan's fraud in wiping out its shareholders last month. After losing their lifetime savings and retirement investments, they have banded together to request an investigation into the possibility of wrongdoing, misconduct, conspiracy, and corruption by government regulators, namely the OTS and FDIC, who unlawfully helped JP Morgan steal Washington Mutual from its shareholders. The seizing of a solvent and well-capitalized bank is unheard of in American history and probably will be spoken of for generations to come unless this outrage is immediately addressed and remediated.
For additional information on the news that is the subject of this release, please contact Michael Rozenfeld or visit www.wamurape.org, an organization devoted to defending shareholder’s interests and American justice.