President Barack Obama yesterday signed into law long-awaited financial regulatory overhaul legislation, vowing there will be no more tax-payer funded bailouts for Wall Street firms. From Reuters:
Obama, who has drawn fire from Americans for bank bailouts that began under Republican President George W. Bush and continued by Obama, said the legislation's provisions make clear that no firm is protected because it is deemed "too big to fail" like AIG during the financial meltdown. "There will be no more taxpayer-funded bailouts. Period," he said. "If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy."The legislation is designed to tighten regulatory rules across the financial industry to help avoid another financial crisis.
Jul 22, 2010 7:10 AM
Tennessee's largest bank, First Horizon National Corp., posted a surprise second-quarter profit today, bringing in 1 cent per share instead of an analyst-anticipated 9 cents per share loss. The bank also expects to repay its $886 million in bailout funds by the end of the year. Read more at this link.
Jul 16, 2010 12:56 PM
Tad DeHaven at the Cato Institute has placed President Obama's weekend appeal for another bailout of local and state governments in interesting perspective.
It’s not a coincidence that the states find themselves in a fiscal bind. The increasing dependency on the federal government has contributed to the states’ dereliction of duty when it comes to keeping their fiscal houses in order.HT: Free Market Mojo
Jun 15, 2010 11:04 AM
President Obama wants Congress to divert another $50 billion to state and local governments struggling with low tax collections.
Mr. Obama did not propose to offset the cost of any state aid with savings from other spending cuts or tax increases, as some conservative Democrats and Republicans have demanded. He reminded the leaders that he has proposed several ways to reduce future spending, including a three-year domestic spending freeze starting in the coming fiscal year. But his advisers, and many economists, argue that additional deficit spending is needed to keep the economy from relapsing into recession.The main reaction is one of negative fatigue. Mish isn't in favor, saying it shows how the president is "beholden to public unions no matter how unjustified the cost." And the AJC's Jamie Dupree says he wouldn't be surprised if even Democrats won't support the president too wholeheartedly here.
Jun 14, 2010 9:54 AM
The Fiscal Times reports on the progress of banks' TARP warrant buybacks. Turns out the Treasury is getting a lot more cash that many had expected when the warrants were issued 18 months ago.
American Express Corp. raised its offer by $80 million to $340 million before Treasury agreed to sell back its warrants. Morgan Stanley, one of the nation’s biggest banks, reached a tentative deal to buy its warrants back for $900 million. But senior Treasury officials decided the offer still wasn’t high enough, and Morgan agreed to pay an extra $50 million. In more than a half-dozen other cases cited by the inspector general, Treasury officials quietly bargained with a variety of different tactics.
May 13, 2010 9:02 AM
Stocks around the world are rallying today on the news of government and central bank plans — headlined by a massive $750 billion bailout fund in Europe — to ease fears of a sovereign debt crisis. The biggest Middle Tennessee-based gainer? O'Charley's, which is up more than 12 percent, albeit on pretty normal volume.
May 10, 2010 11:11 AM
During Pinnacle Financial Partners' Q4 conference call Wednesday, CEO Terry Turner was asked about when he might repay the government's $95 million TARP investment in the bank. Turner, who had originally planned to send D.C. a big check late last summer, said a repayment is not in the cards soon.
“We’re not interested in repaying until the economic landscape is on solid footing and heading north and that … our nonperforming loan trends are heading north, too.”
Jan 21, 2010 7:32 AM