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Bailout

WQXR News

After Strong Day, World Stocks Fall

Tuesday, May 11, 2010

World stocks fell today, following Monday, one of the strongest days markets had in months.

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WQXR News

Stocks Soar Due to $1 Trillion Rescue Fund

Monday, May 10, 2010

The spike followed an announcement from the European Union and the International Monetary Fund that they would provide nearly $1 trillion to help bail out European nations.

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The Takeaway

Setting Priorities for Your DIY Bailout

Wednesday, March 24, 2010

In the aftershocks of the financial crisis and with billions of dollars flying in stimulus, TARP, and other tools, have you been left wondering where your bailout is? Takeaway contributor, Beth Kobliner has gotten that question a lot: she's the author of “Get a Financial Life.”

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The Takeaway

Is Money a Taboo Topic?

Tuesday, March 16, 2010

We're running a 10-week series we're calling the Do-It-Yourself Bailout. This week we're looking at why it's so hard to talk about money issues. What about your personal finances do you find it hardest to share with other people? Is it how much debt you have? How much you get paid?

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WQXR News

Cuomo Charges Bank of America with Fraud

Friday, February 05, 2010

NY Attorney General Andrew Cuomo has sued Bank of America and former CEO Ken Lewis for hiding huge losses at Merrill Lynch in 2008.

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WQXR News

Citigroup Starts to Pay Back Its Debt

Monday, December 14, 2009

President Barack Obama is meeting with financial industry executives later this morning. That news comes as banking giant Citigroup says it will repay $20 billion of the $45 billion it received in government bailout money.

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The Takeaway

Philadelphia Mayor Michael Nutter on US Cities in Trouble

Monday, November 30, 2009

As economists declare the country to be officially heading out of recession, many are looking around them and still seeing severe economic troubles. Philadelphia Mayor Michael Nutter joins us; he says American cities are in serious trouble, can expect little help from cash-strapped state governments, and need direct action from Washington. (click through for a full interview transcript)

 

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The Takeaway

Takeouts: Bailed Out and Bankrupt, Brett Favre, Listeners on Stimulus

Monday, November 02, 2009

  • Business Takeout: Retail lender CIT files for one of the biggest corporate bankruptcies on record, and takes $2.3 billion in bailout money with it. Louise Story, finance reporter for our partners The New York Times, explains.
  • Sports Takeout: The Takeaway's sports contributor Ibrahim Abdul-Matin talks about the decidedly mixed reception ex-Packers quarterback Brett Favre got as he took the Minnesota Vikings to victory in Green Bay over the weekend.
  • Listener Takeout: Listeners respond to our question on whether and how stimulus money is making a difference in their jobs.

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The Takeaway

Takeouts: Lieberman, Bailouts, and Listeners on Cleanliness

Wednesday, October 28, 2009

  • Washington Takeout: The Takeaway's Washington correspondent, Todd Zwilich, explains the surprisingly staunch and early stance from Sen. Joe Lieberman (I-Conn.) against the Democratic health reform bill ... in particular on the inclusion of a public option.
  • Business Takeout: Louise Story, finance reporter for The New York Times, brings us word of yet another government bailout with the hope of preventing another Lehman Brothers–style collapse.
  • Listener Takeout: We hear from listeners arguing whether or not women are more obsessed about cleaning than men.

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The Takeaway

Debate Over Pay Cuts at Bailed-Out Banks

Friday, October 23, 2009

The Obama administration plans to cut executives' pay at companies that received taxpayer money as part of the financial bailout. Meanwhile, the Federal Reserve says it will monitor bank pay packages in the hopes of deterring payouts that reward overly-risky behavior. For a look at what this means for recruiters we're joined by Joe Nocera, business columnist for The New York Times.

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The Takeaway

White House to Curb Executive Pay at Bailed-Out Banks

Thursday, October 22, 2009

According to Bloomberg News, Wall Street bonuses are on track to increase by 40 percent this year. But as our partner The New York Times reports, the Obama administration will order the companies that received the most aid from the bailout to slash the pay of their top earners. According to officials who spoke to the paper, seven companies will have to cut the paychecks of the 25 highest-paid executives by an average of about 90 percent from last year. More companies will have to curb special perks like country club memberships and private planes. We look at how much the government should be involved in setting private salaries with New York Times reporter Stephen Labaton; Paul Hodgson, senior researcher at The Corporate Library; and Steve Kaplan, professor of finance at the University of Chicago's School of Business.

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The Takeaway

The Financial Crisis Inquiry Commission (Say it Five Times Fast)

Thursday, September 17, 2009

Today the Financial Crisis Inquiry Commission conducts its first public meeting. The commission is a bipartisan commission tasked with finding the root cause of the nation's financial meltdown. Louise Story, finance reporter for The New York Times, explains why we need yet another commission and what this group is hoping to uncover that we don't already know.

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The Takeaway

One Year On: A Look at the Bailout

Friday, September 11, 2009

A year ago this weekend, the U.S. financial system was teetering on the brink of collapse. As we approach the anniversary of Lehman Brothers' bankruptcy and Bank of America's acquisition of Merrill Lynch, we take a look back at the Emergency Economic Stabilization Act of 2008: the $700 billion federal effort to bail out the U.S. banking system. We speak with Elizabeth Warren, Harvard Law School professor and the chairwoman of the Congressional Oversight Panel monitoring the bailout. (Read the full interview transcript, or check out all the stories in this series.)

"He was not only not right, he wasn't right at the moment he said it, and he knew he wasn't right."
—Elizabeth Warren, chair of the Congressional Oversight Panel, on former Treasury Secretary Hank Paulson's assertion that there "[was] no reason to believe this [bailout] program will cost taxpayers anything"

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The Takeaway

Fannie, Freddie Post Big Returns One Year Post-Takeover

Monday, August 31, 2009

Just a year ago, the government stepped in and took over struggling mortgage and loan security giants Fannie Mae and Freddie Mac. They were the first major companies deemed "too big to fail," although they would not be the last.  One year after the takeover, both Fannie and Freddie are reporting huge profits.  The times, to paraphrase Bob Dylan, might just be a-changin'.

Joining us to tell us where these gains are coming from and what we've learned in our year of nationalized mortgage lending is Louise Story, Wall Street and finance reporter for the New York Times.

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The Takeaway

Defending a $100 Million Pay Package

Friday, August 14, 2009

Is $100 million too much for one year for one Citigroup trader? That's what the White House pay czar may decide as he starts his compensation review at bailed-out financial firms. But Citi is arguing that its energy trader deserves the money. Takeaway friend and finance expert Alvin Hall looks at the bank's argument. And we speak to two people with an opinion: Matt Spaulding is a small business owner in Atlanta; and Judy Coughlin is a clerical worker in Lowell whose union just voted for a pay freeze.

Watch a Fox Business News report on Citigroup's push for compensation.

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The Takeaway

In the Fine Print: The Merrill Lynch-Bank of America Deal

Thursday, June 25, 2009

On Capitol Hill, Bank of America’s acquisition of Merrill Lynch is coming under serious scrutiny. Fed Chairman Ben Bernanke is going before the committee today as lawmakers say the Fed hid some unsavory parts of the deal from other agencies in order to make the merger go through. Bank of America received billions in federal bailout funds as it struggled to absorb Merrill’s financial liabilities. For more of the story, The Takeaway talks to Peter Morici, professor of international business at the University of Maryland.

"There is always pressure present when a private company negotiates with the government."
— University of Maryland Professor Peter Morici

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The Takeaway

Here's Looking at You, AIG! Obama Picks a Pay Czar

Monday, June 08, 2009

Do you remember the headlines of a few months back, when AIG handed out $165 million in bonuses after taking a federal handout? Well, so does the Obama administration. This week they are poised to announce a new set of regulations on executive compensation. They are also nominating a so-called Pay Czar to monitor executive compensation. Louise Story, reporter for The New York Times, joins The Takeaway with more.

For more, read Louise Story's and Eric Dash's article, U.S. to Propose Wider Oversight of Compensation, in the New York Times.

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The Takeaway

Building Confidence Via Stress Tests

Friday, May 08, 2009

The Federal Reserve yesterday released the long-awaited results of the “stress tests”. The tests found that ten of the nation's 19 largest banks need a total of about $75 billion in new capital to withstand losses if the recession worsened. The banks in trouble will have until June 8 to come up with a plan and have it approved. While the verdict was far more upbeat than many in the industry had feared when the tests were first announced in February, will the results help build the confidence they're meant to? Edmund Andrews, New York Times economics reporter, joins The Takeaway to discuss.

For more, read Edmund L. Andrews' article, Ailing Banks Need $75 Billion, U.S. Says, in today's New York Times.

Stress-test results: click here to see which banks still need more cash.

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The Takeaway

Is the Stress-Test Good Economics or Just Good PR?

Friday, May 08, 2009

The Federal Reserve yesterday released the long-awaited results of the “stress tests”. The report gave nine of the nation's largest banks a clean bill of health, and told ten others to raise $75 billion in new capital. The banks in trouble, including Bank of America, Wells Fargo, and Citigroup, will have until June 8 to come up with a plan to raise the money and have it approved. Joining The Takeaway is Simon Johnson, Professor at MIT, former chief economist at the IMF, and co-founder of the economics blog Baseline Scenario. He's been a critic of Treasury Secretary Timonthy Geithner's approach to solving the nation's financial woes, he joins us to discuss the results, the after-hours upsurge in trading, and what this means for the economy.
"The stress testing is only as good as the technical models and as good as the political will you have to oversee powerful banks."
—MIT Sloan Professor Simon Johnson on the results of the banks' stress tests

Stress-test results: click here to see which banks still need more cash.

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The Takeaway

Stress-Test Results: How Did the Big Banks Do?

Thursday, May 07, 2009

Report cards on the nation's 19 biggest banks will be released later today, but not all of the banks will be getting gold stars. While the results of the government-ordered stress tests are still to be released, early news of the results have been trickling out for days. The early leaks suggest that Bank of America will need $33.9 billion in additional capital. In fact, many of the banks tested need more money. But, this doesn't mean another multi-billion dollar bailout is looming. So if the additional funds don't come from the government, where will they come from? Eric Dash is following this story for our partners the New York Times and he joins The Takeaway with a report.

For more, read Eric Dash's and Louise Story's article, As Stress Tests Are Revealed, Markets Sense a Turning Point, in the New York Times.

Which banks will need more money? See our report card

Want to keep an eye on your stocks? Watch the market here.

Want to watch how the big 19 are doing in the market?
J.P. Morgan Chase & Co.
Citigroup Inc.
Bank of America Corporation
Wells Fargo & Co.
Goldman Sachs Group, Inc.
Morgan Stanley
Metlife, Inc.
PNC Financial Services
U.S. Bancorp
The Bank of New York Mellon Corporation
SunTrust Banks, Inc.
State Street Corporation
Capital One Financial Corp.
BB&T Corp.
Regions Financial Corp.
American Express Co.
Fifth Third Bancorp
Keycorp
GMAC LLC
Still want more? Here is related coverage from The Takeaway.
And here is Pro Publica's investigation into the stress tests.

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