Entries tagged "Paulson Plan"

Congress' role in the equity infusions

If Treasury Secretary Henry Paulson and a series of congressional Republicans had gotten their way, there would have been no equity infusions in financial institutions....

Will the government's capital plan encourage bank consolidation?

Treasury Secretary Hank Paulson's plan to invest $125 billion in the nation's nine leading banks is intended to send a clear message to the credit markets, but the hastily planned investments prompt a slew of questions. In short, Treasury's effort to "destigmatize"  troubled institutions by also buying into healthy banks means the latter could put that capital to work in an offensive, rather than a defensive, fahion. That could mean more acquisitions between have banks and have-not banks. Paulson is undoubtedly aware of this "side effect," which may in fact be intentional. After all, he didn't give troubled banks...

What lit up the financial crisis

How many light bulbs does it take to screw up the economy?The transition from incandescent light bulbs to compact fluorescent light bulbs may have contributed to the uncertainty in the financial markets, claims a group of Republican congressmen....

Can Merrill and Lehman call a Mulligan?

What a difference a few days make. In the week after the federal government took over Fannie Mae and Feddie Mac, the markets pounded Lehman Brothers Holdings Inc., sending it into bankruptcy. Seeing the writing on the wall, Merrill Lynch & Co. CEO John Thain partnered up with Ken Lewis' Bank of America Corp. to avoid the same fate. The markets then turned their attention to the remaining investment banks, Morgan Stanley and Goldman, Sachs & Co., which both took a beating for three days until the government finally got serious about addressing the crisis. Now, the fog is clearing,...

Soapbox: The reformation

In The Daily Deal Thomas P. Vartanian (left) and Robert C. Schwenkel, of Fried, Frank, Harris, Shriver & Jacobson LLP, analyze the U. S. Treasury Department's proposed reforms to restructure the federal financial regulatory system. In an ambitious effort calculated to establish the boundaries of a long-term national debate on financial regulation, the U. S. Treasury Department proposed reforms to substantially restructure every aspect of the federal financial regulatory system. The reforms include proposals to make the Federal Reserve the guardian of market stability and extend comprehensive federal regulation to the insurance industry, payments systems and mortgage market participants. Nothing...

Roll Call: April 4, 2008

Here's the latest gossip and news. Fox Interactive Media is restructuring, according to PaidContent.org.Are Microsoft Corp. and Yahoo! Inc. talking this week? Seeking Alpha has the scoop. Regulators are alone in favoring the Paulson plan, says Finance Trends Matter.The top 10 worst financial moves as reported by Reuters.Seesmic buys Twitter client Twhirl, Tech Confidential reports.- Maria Woehr...

Rabble Babble: Paulson's plan

There is a lot of online chatter concerning U.S. Treasury Secretary Henry Paulson's plan to overhaul the nation's financial regulatory structure. The plan presents both "short-term" and "long-term" suggestions that would consolidate federal financial regulators into three primary agencies: the Federal Reserve Board, which under the plan would also act as a market stability regulator; the Office of the Comptroller of Currency, which would oversee savings, loans, and insurance companies (operating under a new federal charter to replace the state chartered system); and the Securities and Exchange Commission and Commodities Future Trading Commission would merge. Lawmakers and lobbyists are expected...

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