Most Clicked The Financial Services Roundtable SmartBrief Stories
1. FDIC explains plan to prevent 1.5 million foreclosures
The Financial Services Roundtable SmartBrief | Nov 14, 2008
The Federal Deposit Insurance Corp. has put forth a proposal to offer incentives to companies that agree to modify mortgages for struggling homeowners. The plan, which would amp up the government's efforts to curtail the foreclosure issue, has the support of Democratic congressional leaders. "We think it's essential that we actually strike at the underlying cause of the problems in the financial markets," said Michael Krimminger, special adviser to the FDIC. "We think it's time to make a decisive difference in the housing markets on foreclosures." Washington Post, The (11/14)
2. Insurers buy up tiny banks to gain access to rescue funds
The Financial Services Roundtable SmartBrief | Nov 18, 2008
Life insurance companies in the U.S. have been acquiring small banks and thrifts in an effort to obtain some of the government's rescue funds. Lincoln National, Genworth Financial and Hartford Financial Services Group have all announced plans to purchase small financial institutions so they can transform themselves into savings-and-loan holding companies. The developments may lead to significant changes in the way the insurance industry is regulated. Wall Street Journal, The (subscription required) (11/17)
3. Paulson locks horns with lawmakers over rescue fund
The Financial Services Roundtable SmartBrief | Nov 19, 2008
Treasury Secretary Henry Paulson testified at a House Financial Services Committee hearing that the $700 billion economic-rescue fund is intended for investing in financial firms. Members of Congress, however, say the money should be used to curb foreclosures. Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., sided with the lawmakers, saying she thinks it is "essential" that the Treasury offer credit help and loan guarantees to help stem defaults. Washington Post, The (11/19) CNBC (11/18) ClipSyndicate (11/19)
4. Analysis: Another version of subprime loan emerges
The Financial Services Roundtable SmartBrief | Nov 20, 2008
Subprime-mortgage lenders and brokers are capitalizing on a federal program that was established years ago to encourage homeownership by insuring loans for borrowers of modest means. The strategy emerged after Washington expanded the Federal Housing Administration program as part of an emergency effort to bolster the U.S. economy. "Within the next 12 to 18 months, there is going to be FHA-insurance Armageddon," said Gary E. Lacefield, head of Risk Mitigation Group. BusinessWeek (11/19)
5. World leaders agree on steps to address economic crisis
The Financial Services Roundtable SmartBrief | Nov 17, 2008
Leaders from the Group of 20 industrialized and emerging nations met in Washington this weekend and vowed to avoid protectionism, work quickly toward an overhaul of the regulatory system and shore up growth around the world. The leaders presented a united front while promising to take "whatever further actions are necessary to stabilize the financial system." Officials acknowledged that the outcome will depend largely on the Obama administration. Financial Times (11/16) Economist, The (11/16) ClipSyndicate (11/17)
6. Complaints prompt FDIC to rethink debt-guarantee plan
The Financial Services Roundtable SmartBrief | Nov 17, 2008
JPMorgan Chase, Bank of America and other financial institutions complained that the FDIC's $1.4 trillion debt-insurance program would spark an exodus from overnight interbank loans. The complaints prompted the FDIC to reconsider the plan. "We are definitely thinking through how to respond to some of the concerns that have been raised," said Art Murton, director of the insurance and research division at the FDIC. "Complexity is somewhat inevitable. We're doing our best to take away unnecessary confusion." Bloomberg (11/17)
7. HUD changes mortgage-rescue plan to boost participation
The Financial Services Roundtable SmartBrief | Nov 20, 2008
The White House said it is altering its Hope for Homeowners mortgage-rescue plan to encourage participation from more homeowners and lenders. The Department of Housing and Urban Development's program took effect at the beginning of October. "These modifications should increase lender participation and help more families who are having difficulty paying their existing mortgages, but can afford a new affordable loan insured by HUD's Federal Housing Administration," said HUD Secretary Steve Preston. In a joint statement Wednesday, the Financial Services Roundtable and the Housing Policy Council acknowledged the importance of the changes, but also encouraged HUD to continue pursuing other avenues to assist at-risk homeowners. EasyBourse (11/19) CNNMoney.com (11/19)
8. Bank of America's loan modifications hit roadblock
The Financial Services Roundtable SmartBrief | Nov 18, 2008
Bank of America decided this fall to modify billions of dollars worth of home loans in an effort to settle charges brought against its newly acquired Countrywide Financial. At the time, the move was hailed as a turning point in the crisis. The investors who hold Countrywide-mortgage-backed securities, however, are not so enamored with the agreement. Wall Street Journal, The (subscription required) (11/18)
9. Treasury pumps $33.6 billion into 21 banks:
The Financial Services Roundtable SmartBrief | Nov 18, 2008
The Treasury Department has provided $33.56 billion to 21 banks as part of the $700 billion Troubled Asset Relief Program. The infusion comes from the $250 billion that the Treasury had set aside from TARP for capital injections. Reuters (11/17)
10. Gramm says deregulation not to blame for crisis
The Financial Services Roundtable SmartBrief | Nov 17, 2008
Phil Gramm, a former U.S. senator, spent his time in office opposing government intervention in the financial markets, becoming a proponent of deregulation and pushing through laws that he says allowed businesses to run without unnecessary restraints. His critics, however, say Mr. Gramm's efforts significantly contributed to what has become a global financial crisis. New York Times, The (11/16)
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