Entries Tagged 'Subprime Crisis' ↓
October 11th, 2008 — Auto, Auto Loans, Automobile Industry, Bankruptcy, Credit Crisis, Credit Crunch, Economy, Financing, GMAC, Gas, Loans, Mergers, Mortgage Meltdown, Subprime Crisis, oil
General Motors and Chrysler are holding preliminary talks about a possible merger or acquisition of Chrysler by GM.
Chrysler already works on a joint project with GM making hybrid gas-electric components, and has approached GM about some type of merger or acquisition.
The Wall Street Journal, has said that Cerberus, a private equity firm that owns a large stake of Chrysler as well as about half of GM’s financing arm, GMAC Financial Services, floated the idea of trading Chrysler’s automobile operations to GM in exchange for GM’s remaining portion of GMAC. GMAC, while primarily an auto lender, also has a significant mortgage portfolio and lending operations that have been damaged by the subprime crisis.
October 6th, 2008 — Bailout, Bush, Credit Crisis, Credit Crunch, Economy, Government, Market Crash, Paulson, Rescue, Subprime Crisis
Treasury Secretary Henry Paulson has appointed former Goldman Sachs executive Neel Kashkari to oversee the Troubled Assets Relief Program and the newly created Office of Financial Stability.
Kashkari is the assistant Treasury Secretary for International Economics and Development. He has been with the Treasury since the summer of 2006 and has worked on several of the Treasury’s initiatives in response to the housing crisis.
Kashkari will oversee purchasing and managing up to $700 billion in troubled assets to clean up the credit market.
The Treasury also announced today a set of guidelines for how it would hire firms to manage asset purchases.
September 29th, 2008 — 1987, Bailout, Bailout Vote, Credit Crisis, Credit Crunch, Dow, Economy, Federal Government, House, Market News, Subprime Crisis
Stocks crashed Monday afternoon as the Dow suffered a 778 point drop, making it the worst single-day point loss in history, as the House voted down the government’s $700 billion economic bailout plan.
Stocks had been heading south as the vote began, on fears that Congress would not be able to come to an agreement on the fix for “frozen” credit markets. The “frozen” market means that banks are holding on to their cash, making it difficult for businesses and individuals to get any type of loan.
The drop of 778 points surpasses the 685 point loss on Sept. 17, 2001 - the first full day of trading after the September 11th attacks.
Although another version of the rescue will go before Congress soon, investors are skittish that passing any type of bill will be a more drawn-out process than they had initially expected.
Aside from the pummeled Dow, the S&P 500 was down 8.7% and the Nasdaq lost 9.1%.