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Wall Street Aristocracy Got $1.2 Trillion in Secret Loans

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8/27/2011


 

Citigroup Inc. and Bank of America Corp. were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits. By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

        

 

WASHINGTON (AP) -- Foreclosures made up roughly one-third of all home sales this spring. While that's a smaller share of sales from the previous quarter, it's six times the percentage of foreclosures in a healthy housing market. Foreclosure sales, which include homes purchased after they received a notice of default or that were repossessed by lenders, accounted for 31 percent of the market in the April-June quarter, foreclosure listing firm RealtyTrac Inc. said Thursday. The share of the market would likely have been larger this spring if not for a state and federal investigation into faulty paperwork by banks and servicers. The probe has led many banks to delay foreclosure sales. Once that is complete, foreclosures will likely surge later this year.

       

 

NEW HAVEN – One number says it all. The number is 0.2%. It is the average annualized growth of US consumer spending over the past 14 quarters – calculated in inflation-adjusted terms from the first quarter of 2008 to the second quarter of 2011. Never before in the post-World War II era have American consumers been so weak for so long. This one number encapsulates much of what is wrong today in the US – and in the global economy.

         

 

TOKYO (Reuters) - Moody's Investors Service cut its rating on Japan's government debt by one notch to Aa3 on Wednesday, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies. Japan is preparing to elect its sixth leader in five years to replace unpopular Prime Minister Naoto Kan, under fire for his handling of the response to a March tsunami and subsequent radiation crisis at a crippled nuclear power plant.

 

 

 

 

More Good Stuff:

 

Bernanke proposes no new steps to boost economy - Yahoo! Finance

     

One Number Says it All - Project Syndicate

      

Foreclosures made up 31% of home sales in 2Q

       

Calculated Risk: Weekly Initial Unemployment Claims increased to 417,000

      

Obama Goes All Out For Dirty Banker Deal | Rolling Stone Politics

        

He’s Got the Whole World in His Hands | The Reformed Broker

        

Illinois Imploding | Points and Figures

     

U.S. housing faces extra drag - low appraisals | Reuters

       

Real Estate: US Mortgage Purchase Applications at 15-Year Low - CNBC

      

Moody's cuts Japan rating, blames politics | Reuters

     

Fallout From The Fed's Secret $1.2 Trillion Bank Bailout - Seeking Alpha

      

Squatters Are Taking Over Detroit's 100,000 Vacant Homes

     

What The Mortgage Deal In The Works Reveals About The Obama Administration

      

UBS to cut 3,500 jobs

      

Teacher pension fund joins California auditor's risk list - San Jose Mercury News

       

New home sales fall, 2011 could be wortst year ever

        

Abnormal Volatility? « Systematic Relative Strength

        

Liquidity Lifelines: Tracking Fed Loans to Banks - Bloomberg

       

Wall Street Aristocracy Got $1.2 Trillion From Fed - Bloomberg

        

US_Shrinking_School_Week?

      

In a difficult housing market, more homes sell for less than $10,000

       

Greeks act to avert bank failure - FT.com

 

  
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