It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
The U.S. government and the Federal Reserve have spent, lent or guaranteed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.
New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.
President Barack Obama and Treasury Secretary Timothy Geithner met with the chief executives of the nation’s 12 biggest banks on March 27 at the White House to enlist their support to thaw a 20-month freeze in bank lending.
“The president and Treasury Secretary Geithner have said they will do what it takes,” Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said after the meeting. “If it is enough, that will be great. If it is not enough, they will have to do more.”
Commitments include a $500 billion line of credit to the FDIC from the government’s coffers that will enable the agency to guarantee as much as $2 trillion worth of debt for participants in the Term Asset-Backed Lending Facility and the Public-Private Investment Program. FDIC Chairman Sheila Bair warned that the insurance fund to protect customer deposits at U.S. banks could dry up because of bank failures.
--- Amounts (Billions)---
Total $12,798.14 $4,169.71
Federal Reserve Total $7,765.64 $1,678.71
Primary Credit Discount $110.74 $61.31
Secondary Credit $0.19 $1.00
Primary dealer and others $147.00 $20.18
ABCP Liquidity $152.11 $6.85
AIG Credit $60.00 $43.19
Net Portfolio CP Funding $1,800.00 $241.31
Maiden Lane (Bear Stearns) $29.50 $28.82
Maiden Lane II (AIG) $22.50 $18.54
Maiden Lane III (AIG) $30.00 $24.04
Term Securities Lending $250.00 $88.55
Term Auction Facility $900.00 $468.59
Securities lending overnight $10.00 $4.41
Term Asset-Backed Loan Facility $900.00 $4.71
Currency Swaps/Other Assets $606.00 $377.87
MMIFF $540.00 $0.00
GSE Debt Purchases $600.00 $50.39
GSE Mortgage-Backed Securities $1,000.00 $236.16
Citigroup Bailout Fed Portion $220.40 $0.00
Bank of America Bailout $87.20 $0.00
Commitment to Buy Treasuries $300.00 $7.50
FDIC Total $2,038.50 $357.50
Public-Private Investment* $500.00 0.00
FDIC Liquidity Guarantees $1,400.00 $316.50
GE $126.00 $41.00
Citigroup Bailout FDIC $10.00 $0.00
Bank of America Bailout FDIC $2.50 $0.00
Treasury Total $2,694.00 $1,833.50
TARP $700.00 $599.50
Tax Break for Banks $29.00 $29.00
Stimulus Package (Bush) $168.00 $168.00
Stimulus II (Obama) $787.00 $787.00
Treasury Exchange Stabilization $50.00 $50.00
Student Loan Purchases $60.00 $0.00
Support for Fannie/Freddie $400.00 $200.00
Line of Credit for FDIC* $500.00 $0.00
HUD Total $300.00 $300.00
Hope for Homeowners FHA $300.00 $300.00
The FDIC’s commitment to guarantee lending under the
Legacy Loan Program and the Legacy Asset Program includes a $500
billion line of credit from the U.S. Treasury.
Wall Street is set to resume its rise on hopes that it will get more budding signs of economic recovery. Data being released later Tuesday include the S&P Case-Shiller January home price index, a private research group's March consumer confidence index, and Chicago purchasing managers' index of March business conditions.
Consumer confidence is expected to show slight improvement, and so is the purchasing managers index. But home prices are expected to post another decline.
On the last day of the quarter, Dow Jones industrial futures are up 73, or 1 percent, at 7,553. Standard & Poor's 500 index futures are up 5.90, or 0.8 percent, at 790.20. Nasdaq 100 index futures are up 8.25, or 0.7 percent, at 1,231.
The major indexes dropped about 3 percent Monday as the White House rejected General Motors Corp.'s and Chrysler's turnaround plans, raising the possibility of an automaker bankruptcy.
Before the Dow's two-day pullback, however, the index soared 21 percent in fewer than three weeks. The Dow remains up 14.5 percent from its nearly 12-year low on March 9, but is down 14.3 percent for 2009.
Bond prices were modestly lower in early trading Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.73 percent from 2.72 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, was flat at 0.18 percent.
Crude oil rose $1.09 to $49.50 a barrel in electronic trading on the New York Mercantile Exchange.
The dollar was mostly lower against other major currencies. Gold also fell.
Home prices continued their multiyear slide in January, according to the S&P/ Case-Shiller home-price indexes, as 14 of 20 major metropolitan areas posted price declines of more than 10% from a year earlier.
The Sun Belt continues to be hit hardest, and nationally, home prices are at levels similar to late 2003.
"Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines, and nine...falling more than 20% in the last year," said David M. Blitzer, chairman of S&P's index committee. Both composite indexes and 13 of the 20 metropolitan areas reported record year-over- year declines.
As of January, the 10-city index is down 30% from its mid-2006 peak and the 20-city is down 29%. The two indexes have fallen every month since August 2006, 30 straight.
The indexes showed prices in 10 major metropolitan areas fell 19.4% in January from a year earlier and 2.5% from December. The drop marks the 10-city index's 16th-straight monthly report of a record decline.
In 20 major metropolitan areas, home prices dropped 19% from the prior year, also a record, and 2.8% from December.
Again, none of the regions could stave off a decline from December to January. Month-to-month decliners were again led by Phoenix, which posted a drop of 5.5%. Las Vegas, which has been a close second behind Phoenix for months, showed a " marginal improvement" in monthly returns, although its results were still negative.
For the 10th straight month, no region was able to avoid a year-over-year decline. Phoenix and Las Vegas were again the worst performers, with drops of 35% and 33%, respectively, from a year earlier. San Francisco again followed, with a decline of 32%. Phoenix is down 49% from its peak in June 2006. Dallas has been the least hurt, down 11% from its peak in June 2007.
Compared with a year earlier, Dallas and Denver again had the best relative performance, with annual declines of 4.9% and 5.1%, respectively.
The data come a week after a government report that sales of previously occupied homes jumped 5.1% in February, the most in five years, driven by foreclosure sales that are sending prices plunging. The median price was down 16% from a year earlier, the second-biggest drop ever.
Tight credit and a still-bleak economic outlook amid high numbers of job cuts have added more stress to U.S. households, meaning the glut of housing remains.
Six States Join Michigan with Double Digit Unemployment,
The unemployment rate jumped last month in 49 states, with Michigan leading the way, the U.S. government reported on Friday. Nebraska was the only state to escape rising joblessness.
The near-collapse of the auto industry pushed Michigan's unemployment rate up to 12% in February, seasonally adjusted, according to the U.S. Department of Labor.
Sky-high unemployment rates were also reported in South Carolina (11%), Oregon (10.8%), North Carolina (10.7%), California and Rhode Island (10.5% each), and Nevada (10.1%).
The most drastic month-to-month increases in the unemployment rate were reported in North Carolina and Oregon, which each saw an increase of 1%. New Jersey also saw a dramatic surge, climbing 0.9% in February.
More at Link...
Chicago Sun-Times parent files for bankruptcy
NEW YORK (Reuters) - The Sun-Times Media Group, parent of the Chicago Sun-Times, filed for bankruptcy protection on Tuesday, earning Chicago the distinction of being the first U.S. city served by two bankrupt newspaper publishers.
The Sun-Times also said it hired Rothschild Inc to try to sell some of its assets, which include 59 newspapers and their websites. The Sun-Times is one of the papers that it could sell, spokeswoman Tammy Chase said.
Interim Chief Executive Jeremy Halbreich told the Sun-Times that the company has received interest from several potential buyers. He was not immediately available for comment.
The Sun-Times filed for Chapter 11 bankruptcy protection at the U.S. Bankruptcy Court in Delaware.
It plans to operate its newspapers and websites while improving its cost structure and stabilizing operations. It said it has financial resources to continue daily operations.
"Unfortunately, this deteriorating economic climate, coupled with a significant, pending IRS tax liability dating back to previous management, has led us to today's difficult action," Halbreich said.
The publisher joins its much larger, Chicago-based rival, Tribune Co, in a growing list of newspaper companies that are choosing bankruptcy as the best way to restructure as advertising revenue plummets.
The Sun-Times, unlike Tribune and some U.S. newspaper publishers, is not facing an overwhelming debt load.
Instead, the Internal Revenue service has said the company owes up to $608 million in back taxes and penalties, dating back to when it was Hollinger International, controlled by now-imprisoned media baron Conrad Black.
The Sun-Times plans to complete the bankruptcy process this year. It hired Huron Consulting Group as its restructuring adviser and Kirkland & Ellis as legal adviser.
Sun-Times properties include the Beacon News in Aurora, the Courier-News in Elgin, the Lake County News-Sun in Waukegan and the Herald News in Joliet. All are in Illinois. It also owns the Post-Tribune in Merrillville, Indiana.
Originally posted by redhatty
JPM $87T vs $1.7T in total assets
BAC $38T vs $1.4T in total assets
C $31T vs $1.2T in total assets
GS $30T vs $0.16T in total assets (1000:1 leverage!!!)
Board member Kent Kresa, the former chairman and CEO of defense contractor Northrop Grumman Corp., was named interim chairman of the GM board.
Woh. Hold on there. Who is Kent Kresa?
In addition to his work as a member of the board of GM, he’s also a Senior Advisor at the Carlyle Group. Since his bio on the Carlyle Group’s website is the most complete one that I came across, I’ll quote from it. Everything in bold references links to the black world of special access programs:
Global private equity firm The Carlyle Group today announced that Kent Kresa, the former Chairman and CEO of Northrop Grumman Corporation, has joined Carlyle as a Senior Advisor to its aerospace and defense group.
Mr. Kresa was Chairman of the Board of Directors of Northrop Grumman Corporation from September 1990 until October 2003. He served as Chief Executive Officer from January 1990 until March 2003, and President from 1987 until September 2001. In 1982 he was appointed Group Vice President of the company’s Aircraft Group and in 1986 was named Senior Vice President-Technology Development and Planning. Mr. Kresa joined Northrop Grumman in 1975 as Vice President and Manager of the company’s Research and Technology Center, developing new proprietary processes and products for the company. From 1976-82 he served as Corporate Vice President and General Manager of the Ventura Division, a leader in the production of unmanned aeronautical vehicles.
Before joining Northrop Grumman, Mr. Kresa served with the Defense Advanced Research Projects Agency, where he was responsible for broad, applied research and development programs in the tactical and strategic defense arena. From 1961-68 he was associated with the Lincoln Laboratory at the Massachusetts Institute of Technology (M.I.T.), where he worked on ballistic missile defense research and reentry technology.…
Mr. Kresa serves on the boards of directors of the Avery Dennison Corporation, Fluor Corporation, General Motors Corporation, Eclipse Aviation Corporation, Trust Company of the West, and Advanced Bionics Corporation. He is the Board Vice Chair of the Performing Arts Center of Los Angeles County and serves on the boards of several non-profit organizations and universities. Mr. Kresa is a Member of the M.I.T. Lincoln Laboratory Advisory Board and a Member of the UCLA Anderson School of Business Board of Visitors.
I wonder what the agenda is behind this man now managing GM.
SUMMIT-UPDATE 1-G20 should double or triple IMF funds - Rudd
LONDON, March 31 (Reuters) - The Group of 20 summit must make progress on a strategy for economic recovery and should aim to double, and if necessary triple, the resources of the IMF, Australian Prime Minister Kevin Rudd said on Tuesday.
Rudd said the risks to the economy were still on the downside.
"The first major risk comes from (a) potential economic collapse of emerging markets," he said. "The second major risk to global recovery is the process of deleveraging."
Rudd said the gathering would be judged on its effectiveness in restoring confidence and must reach agreement on issues including macroeconomic action, toxic assets, reform of financial institutions and regulation. He added it must draw a line to prevent further acts of protectionism.
"We should aim to double and if necessary triple pre-crisis levels of IMF resources," Rudd said.
"What is of good news to the global economy is this: America has returned to the stage when it comes to global economic leadership."
US Midwest business shrinks more rapidly in March
CHICAGO, March 31 (Reuters) - Business activity in the U.S. Midwest contracted in March and at a more severe rate than expected, a report showed on Tuesday.
The Institute for Supply Management-Chicago business barometer fell to 31.4 from 34.2 in February.
Economists had forecast the index at 34.5. A reading below 50 indicates contraction in the regional economy.
The employment component of the index rose to 28.1 from 26.2 in February. Prices paid fell to 34.1 from 37.8 and new orders rose to 30.9 from 30.6. But production slipped to 32.7 from 34.7.