Consumerist
marketplace
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populist rage
Government Orders Pay Cuts For Bailed-Out Firms
The huge salaries and bonuses paid to executives of banks and other firms that received government bailout funds have been the subject of a lot of taxpayer rage. The Obama administration listened, and will order pay cuts. More » -
Carpocalypse
Taxpayers Unlikely To See Much Auto Bailout Money
A new report by the Congressional Oversight Panel — an independent, yet totally powerless, group appointed by the Senate to review the results of the recent government bailouts — states that we'll get a few bucks back from the automakers, but shouldn't count on it to cover our car payments: More » -
bailout
Bank Of America Wants To Begin Paying Back Bailout Money, Avoid Government "Fee"
The Wall Street Journal says that Bank of America is interested in paying back a portion of the bailout money it received, with the goal of getting out from under the purview of the salary czar and reduce a "layer of federal involvement in its affairs." More » -
wall street meltdown
Government Has Made $4 Billion On The Bailout, So Far
The NYT says a little less than a year after the economic meltdown, the government is starting to see a profit from banks repaying bailout money. More » -
banks
Banks Once "Too Big To Fail" Now Even Bigger After Meltdown
Remember those banks that the federal government bailed out because they were "too big to fail?" Well...after mergers and bank takeovers (some encouraged by the government) those banks bailed out because they were "too big to fail" now are much bigger. JP Morgan Chase and Bank of America combined now control more than 20% of all bank deposits in the United States. More » -
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oh hell no
AIG Asks Federal Permission To Pay $2.4 Million In Executive Bonuses
A hush fell over the AIG conference room on the day that their Worst Company in America 2009 trophy was unveiled. The eyes of every executive in the room sparkled with just a bit of pride. "Well done, everyone," said the man at the head of the table. "But we mustn't rest on our gilded-feces laurels. It's time to begin our work for next year's competition."
That's how I imagine the meeting went where AIG decided to award more bonuses to executives next week. More »
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executive compensation
Citibank To Raise Salaries By 50% In Reaction To Bonus Limits
The AP is reporting that Citibank will be raising salaries for certain employees by as much as 50% in order to offset the new bonus restrictions. The company faces the restrictions because it took bailout money. More » -
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bailout
Here's Where Your Overdraft Fees Are Going: Banks Are Paying Government Back For Bailouts
Several banks are doing just what they're always bugging customers to do — paying back money that was lent to them. More » -
tax dollars
FBI Warns Of Bailout Fraud
It's not just monolithic corporations, financial institutions, state governments and the like that are benefiting from bailout funds. Scam artists stand to make a killing also, the FBI says: More » -
bye
GM Files For Bankruptcy Today
After failing to get its debt-for-stock offer approved last week, and missing the June 1st deadline for concessions from creditors and its union, GM will file for bankruptcy later today. Reuters notes that its filing will be the third-largest in U.S. history, after Lehman Bros and Washington Mutual, and the largest ever in manufacturing. More » -
bad ideas
Banks Want Taxpayer Aid To Buy Toxic Assets From Themselves
This is one of those news stories that leave sensible people scratching their heads and wondering what our financial system has come to. The Wall Street Journal article about this is behind a pay wall, but James Kwak at Seeking Alpha lays out the situation and why it's such a horrible idea.
...The Public-Private Investment Program provides subsidies to private investors to encourage them to buy legacy loans from banks. The goal is to encourage buyers to bid more than they are currently willing to pay, and hopefully close the gap with the prices at which the banks are willing to sell.
Allowing banks to buy their own assets under the PPIP is a terrible idea. In short, it allows a bank to sell half of its toxic loans to Treasury – at a price set by the bank.
Banks Aiming to Play Both Sides of Coin [WSJ - subscribers only]
Banks Want to Use Government Money to Buy Assets from Themselves [Seeking Alpha](Photo: columbuscameraop)
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bankruptcy watch
In GM Bankruptcy Plan, Government Will Select New Board Of Directors
Let's say the U.S. has poured billions of dollars into a failing company. How strongly should it try to protect that money once the company files for bankruptcy? The Washington Post is reporting that the plan for GM—which may go belly up as early as Monday—is for federal officials to select 5 or 6 of the company's new board members, and have a say over which 6 of the existing board will remain. The UAW gets to choose another, and Canada might possibly be given one slot to fill. The rest of us will probably just get t-shirts or a souvenir mug. More » -
anger
In Which NPR And Congressional Oversight Panel Chair Elizabeth Warren Hate Each Other
While we were concentrating on other things (Snuggie testing, for example), there has apparently been something of a backlash going on against NPR's Planet Money podcast for its rude treatment of Congressional Oversight Panel Chair Elizabeth Warren. NPR's Adam Davidson has since expressed regret that he talked over Ms. Warren in a rude way — but despite the mea culpa, a series of links about the issue has popped up in our inbox more than a week later. More » -
bailout
JPMorgan Chase Wants To Repay Bailout Money
JPMorgan Chase, Morgan Stanley and Goldman Sachs are seeking permission to repay government bailout funds, says Reuters. More » -
executive compensation
Don't You Wish You Made $1 A Year Like AIG's CEO?
The NYT DealBook Blog says that AIG's $1 interim CEO is living pretty well, despite the whole "being hated for something you didn't do" thing. More » -
auto bailout
Chrysler May Avoid Bankruptcy
It now seems much more likely that Chrysler will avoid bankruptcy. BusinessWeek says that Chrysler and the US Treasury have reached a deal with the banks and private equity firms that hold Chysler's debt. More »
Want to see the top 10 biggest bankruptcies in U.S. history so far? [
