Cities and states trying to balance their budgets can't rely on the $700 billion Troubled Asset Relief Program, Treasury Secretary Timothy Geithner said. The law "does not appear to us to provide a viable way of responding to that challenge," Geithner testified to a House Appropriations subcommittee Thursday.
Treasury Secretary Timothy Geithner said the government will launch the Public-Private Investment Program in July to encourage the sale of banks' troubled assets. Some senior bankers doubt the program will do much because bankers do not want to participate in auctions that result in asset prices lower than those on the books. The situation would put pressure on banks to increase write-downs. The Treasury and other officials are trying to prevent this, but many issues remain.
Democrats on the House Financial Services Committee said the Federal Reserve was not doing enough to help the municipal bond market. David Wilcox, the Fed's deputy director of research and statistics, testified that the agency had reservations about a bill that would allow it to provide liquidity to variable-rate demand obligations. The lawmakers accused the Fed of holding the muni market to an unfair double standard.
EFinancial Careers lists a series of upcoming career-related events in the New York area, including the NYSSA's monthly "Career Chat" panel and its monthly "Career Coffee" session. This month's Career Coffee will be May 29 at 8 a.m. while the Career Chat will be June 4 at 6 p.m. Both events are at NYSSA's Manhattan headquarters.
Although a number of banks have repaid the government for the money they received through the Troubled Asset Relief Program, Old National Bancorp is the only financial institution so far to settle the stock warrants that were part of the deal. The Treasury received $1.2 million for the bank's warrants, which may have been worth more than $5.8 million, according to data compiled by Bloomberg. If the Treasury negotiates similar deals for other bank warrants, the financial institutions are poised to benefit to the tune of nearly $10 billion, the data show.