On Fri, 16 Jan 2009 20:18:17 -0600, "Libby Loo"
wrote:
snip
Bush claims economy on track to recovery
By TOM RAUM, Associated Press Writer Tom Raum, Associated Press Writer
snip
First define "the economy," and "people." It may well be under
their definitions this is indeed true.
The 700 billion TARP fund has been more or less expended, and not
a single "toxic asset" has been purchased, except possibly
through the Fed's discount window [which is *NOT* part of TARP,
although still on the taxpayers' dime].
Now there is to be yet another effort to purchase and sequester
these toxic assets with tax payers money.
============
Paulson, Bair Raise ‘Aggregator Bank’ for Toxic Debt (Update1)
By Rebecca Christie
Jan. 16 (Bloomberg) -- The heads of the U.S. Treasury and Federal
Deposit Insurance Corp. gave further momentum to the idea of a
new government-backed bank to remove toxic assets from lenders’
balance sheets.
----------------
http://www.bloomberg.com/apps/news?p...efer=worldwide
Note that almost all of the companies receiving bailout funds
maintain divisions in low/no tax jurisdictions. How much tax
evasion is occurring? How much of the rescue money would up in
these secret accounts? No one knows.
=========
Jan 16, 6:28 PM (ET)
By KEN THOMAS
WASHINGTON (AP) - Eighty-three of the nation's 100 largest
corporations, including Citigroup, Bank of America and News Corp.
(NWSA), had subsidiaries in offshore tax havens in 2007, and some
of the companies received federal bailout funding, a government
watchdog said Friday.
The Government Accountability Office released a report that said
Bank of America Inc., Citigroup Inc. (C) and Morgan Stanley (MS)
all had more than 100 units in countries that maintain low or no
taxes. The three financial institutions were included in the $700
billion financial bailout approved by Congress.
Insurance giant American International Group Inc. (AIG), which
has received about $150 billion in bailout money, had 18
subsidiaries. JPMorgan Chase & Co. (JPM) had 50 units and Wells
Fargo & Co. (WFC) had 18; both financial institutions received
government bailout money.
snip
Citigroup had 427 units in 23 countries, including 91
subsidiaries in Luxembourg and 90 in the Cayman Islands. Morgan
Stanley had 273 units, News Corp. had 152 and Bank of America had
115. Procter & Gamble Co. had 83 subsidiaries and Pfizer Inc. had
80 in the jurisdictions.
snip
---------------
http://apnews.myway.com/article/20090116/D95OHIB80.html
The banks are about to be back with tin cup in hand
-----------
Harsh turn of fortunes for 2 huge U.S. banks
By Matthew Saltmarsh and Eric Dash
Published: January 16, 2009
Citigroup capped a devastating 2008 by announcing Friday that it
would split into two entities and that it had posted a $8.29
billion loss for the fourth quarter.
Citigroup's rival, Bank of America, posted a more modest loss of
$1.79 billion during the same period, just hours after receiving
a new infusion of government support that could end up costing
more than $100 billion.
But underlining the depth of the problems that have emerged from
Bank of America's acquisition of Merrill Lynch, Merrill had a net
loss of $15.31 billion, or $9.62 a share, in the fourth quarter,
"driven by severe capital markets dislocations," before the
acquisition was completed, Bank of America said. Merrill's
results for the fourth quarter were not a part of Bank of
America's. The merger of the two banks closed on Jan. 1.
Even as Bank of America was coping with the challenge of
absorbing Merrill, Citigroup was announcing the latest steps in
dismantling its own financial supermarket. Citigroup confirmed
that it would divide, for management purposes, into two separate
businesses - Citicorp and Citi Holdings. Citicorp will focus on
international banking, while Citi Holdings will comprise the
brokerage, asset management and consumer finance businesses.
Citigroup, the umbrella company, will remain intact for now. "We
believe there is a lot of value in having them focused," Vikram
Pandit, the chief executive, said, referring to his plan to split
up Citigroup. "We are not in a rush to sell businesses." Pandit
agreed this past week to split off Smith Barney, Citigroup's
valuable retail brokerage arm, into a joint venture with Morgan
Stanley to raise capital so that it could offset the fourth
quarter's huge losses.
snip
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http://www.iht.com/articles/2009/01/...i.4-409630.php
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).