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On Wednesday American International Group Inc’s (AIG) shares fell sharply after the company signed a deal that will put majority ownership in the hands of government.     Late on Tuesday, AIG said it had signed a “definitive” agreement for up to $85 billion in borrowings from the U.S. Federal Reserve, the main part of… Continue reading AIG Shares Fall After Insurer Inks Deal with Federal Reserve

In an evening address to the nation Wednesday night, President George W. Bush called on Americans to support a massive bail-out of financial markets to ease a “serious financial crisis”. The entire economy was in danger, he said in a live TV speech, and failure to act now would cost more later.        He invited… Continue reading Bush Says Bailout Critical to Ease Crisis in Speech to Nation

For the month of August, existing-home sales resumed falling in and prices took a record drop, while inventories decreased sharply. The National Association of Realtors said Wednesday that home resales dropped to a 4.91 million annual rate, a 2.2% decrease from July’s revised 5.02 million annual pace. July originally was seen rising 3.1% to 5.00… Continue reading Home Re-Sales Fell in August

The Mortgage Bankers Association (MBA) reported that applications for U.S. home mortgages retreated to sluggish levels last week as rising interest rates hurt a rise in loan refinancing. According to data published by the MBA, its seasonally adjusted index of mortgage application activity dropped 10.6 percent to 591.4 in the week ended Sept 19. The… Continue reading Mortgage Apps Dropped 10.6%

In an effort to minimize additional disruption as result of the crisis that hit American International Group Inc. (AIG) last week, state insurance regulators will be working with federal officials and the insurer as the company moves forward. State insurance leaders said at a press conference Tuesday at the National Assn. of Insurance Commissioners quarterly… Continue reading State Regulators to Work with Feds, AIG Over Insurer’s Asset Sales

American International Group, Inc. (AIG) today announced that it has signed a definitive agreement with the Federal Reserve Bank of New York for a two-year, $85 billion revolving credit facility. Interest will accrue at a rate based on 3-month LIBOR plus 8.50%. The facility provides for an initial gross commitment fee of 2% of the… Continue reading AIG Signs Definitive Agreement with Fed for $85B Loan

Senator Charles Schumer (NY-D) said Wednesday when speaking on CNBC that Congress will act on the government’s proposed $700 billion rescue plan for the nation’s banking industry by the end of the week, although it likely will be different than what has been proposed by the Treasury. Schumer said that despite reluctance from legislators on… Continue reading Senator Schumer Says Resuce Plan Will Be Worked Out This Week in Congress

CNN reported Tuesday that the FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc. and insurer American International Group Inc. and their senior executives for potential mortgage fraud. Specifics were not provided but is a part of an overall broader probe. The bureau is trying to determine whether anyone in those financial institutions,… Continue reading FBI Investigating Mortgage Fraud at Fannie, Freddie, Lehman and AIG

In a telephone interview with Becky Quick of CNBC’s Squawk Box, Warren Buffett announced that he’s making a $5 billion investment in Goldman Sachs because “the price was right, the terms were right, and the people were right.” Buffett told CNBC that he likes to “bet on brains” and called Goldman the best firm on… Continue reading CNBC Interview: Buffett Investing $5 Billion in Goldman Sachs, Confident in Congress Moving Forward with Treasury Proposal

On Monday Governor David A. Paterson said that New York would begin regulating credit-default swaps, the arcane financial instruments that were little known outside Wall Street before the credit crisis.    New state regulations will take effect on Jan. 1, but the governor said New York had jurisdiction to regulate only about a fifth of… Continue reading New York to Regulate Credit-Default Swaps, Governor Paterson Says