The U.S. Treasury’s sale of its remaining stake in American International Group Inc will fetch $ 7.6 billion, bringing the government a total profit of $ 22.7 billion from its bailout of the insurer in the financial crisis four years ago. The share offering will close the chapter on one of the most politically contentious rescues of 2008, which ultimately gave AIG up to $ 182 billion of government support. At one point, the government estimated that it would never recover all of the bailout money, but as AIG restructured and returned to viability, it was able to repay the […]
The U.S. Treasury is selling its remaining stake in insurer American International Group Inc , bringing an end to government ownership of the company four years after it was rescued from the brink of bankruptcy. In a statement on Monday, the Treasury said it launched an underwritten public offering for its remaining 234.2 million shares of common stock. At Monday’s closing prices the stake would be worth some $ 7.81 billion. Treasury said that the sale would be jointly led by Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and JPMorgan. Treasury also said it would continue to […]
Laurence Fink, chief executive of BlackRock, the world’s biggest money manager, said on Tuesday he is not seeking a job in the administration of Barack Obama. “I am not leaving this job,” Fink told investors at the Goldman Sachs Financial Services Conference in New York. “I will be at BlackRock as long as my board wants me here.” Fink has at times been rumored as a potential candidate to replace U.S. Treasury Secretary Timothy Geithner. “It’s like a myth,” Fink said of the recurrent rumor. “I am happy where I am.” Fink has headed New York-based BlackRock since it was […]
Treasury Secretary Tim Geithner will hold deficit-reduction talks with congressional leaders Thursday, officials said Wednesday. Geithner will meet separately with Senate Democratic leader Harry Reid, Senate Republican leader Mitch McConnell, House Speaker John Boehner and House Democratic leader Nancy Pelosi. Geithner will “continue discussing the actions we need to take to keep our economy growing and find a balance approach to reduce our deficit,” the statement said.
The Treasury Department refused again Tuesday to label China a currency manipulator. In its semiannual report on exchange-rate policies, Treasury said China’s currency remains “significantly undervalued” and “further appreciation of the [yuan] against the dollar and other major currencies is warranted.” Republican presidential candidate Mitt Romney had pledged to cite China as a currency manipulator. President Barack Obama has argued that pressure from his administration has pushed the Chinese currency higher against the dollar. Treasury said the yuan has appreciated by 9.7% against the dollar since June 2010 and 12.6% when adjusted for inflation.
Dear Dr. Don, If I buy a 30-year U.S. Treasury bond, will I receive a monthly check for the interest earnings? Thanks, -Peter Pecuniary Dear Peter, U.S. Treasury securities that pay what’s called “coupon interest” make those payments semiannually. A 30-year U.S. Treasury bond falls into that category. The most recently issued 30-year bond has a 2.75% coupon. The coupon rate determines the interest payments. The 2.75% is the annual coupon. The bond will pay $ 27.50 per year for every $ 1,000 in face value that you own. The semiannual coupon payments are half that, or $ 13.75 per […]
The U.S. Treasury Department and Federal Reserve need to stop using the benchmark interest rate known as Libor in financial rescue programs, as it might not be reliable and could put taxpayer dollars at risk, a federal watchdog said on Thursday. The special inspector-general for the Troubled Asset Relief Program, the bailout vehicle launched during the financial crisis, recommended that the Treasury and the Fed change some initiatives to ensure participating U.S. firms use alternatives to the London inter-bank offered rate in pricing billions of dollars in loans. Libor is intended to measure the rate at which banks lend to […]
A senior Treasury official on Friday urged all major economies to continue to provide support for recovery with a focus on efforts by Europe to navigate through their fiscal and financial system challenges. The official also said that it is important that those efforts are coupled with efforts by China to continue to provide support for growth with an emphasis on shifting their economy onto domestic consumers rather than relying excessively on exports. The official added that it is also critically important to create a balanced relationship between U.S. and China according to international standards on intellectual property and an […]
The Treasury Department on Thursday said that roughly a million troubled borrowers on the verge of foreclosure have had their mortgages permanently modified to lower payments as part of a White House program — with modifications increasing marginally in July. The Treasury reported that 1,060,238 permanent HAMP modifications were started as of July, up from 1,043,000 modifications in June. The total amount helped still fell far short of the 3 to 4 million foreclosures that the White House aimed to stop when it unveiled the program in February 2009. The program, known as the Home Affordable Modification Program, helps struggling […]
The government is changing the terms of its bailout agreement with Fannie Mae and Freddie Mac in a way that will shrink the holdings of the two mortgage giants more quickly and will require payment to the government of all quarterly profits the companies earn. The Treasury Department announced the changes in an effort to deal with concerns that the companies could at some point exhaust the federal support they were guaranteed when they were taken over by the government in September 2008 during the financial crisis. Under the change, the two firms will have to turn over all profits […]