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John Templeton, billionaire philanthropist, dies at 95 ... – (www.iht.com) The world has lost an investment genius. He made a fortune during the depression, predicted the current housing crisis and has predicted that in the end, US house prices will lose 90% of their value by the time it is over. Sir John Templeton, a Tennessee-born investor and philanthropist who amassed a fortune in global stocks and gave away hundreds of millions to foster understanding in what he called "spiritual realities," died on Tuesday in Nassau, the Bahamas, where he had lived for decades. He was 95. His death, at Doctors Hospital in Nassau, was caused by pneumonia, a spokesman, Don Lehr, said. In 1939, when World War II began in Europe, the 26-year-old investor borrowed $10,000 and bought 100 shares each in 104 companies that were selling at $1 a share or less, including 34 in bankruptcy. A few years later, he made large profits on 100 of the companies; four turned out to be worthless. In 1940, he bought a small investment firm that became Templeton, Dubbrow and Vance, the early foundation of his empire. Sir John embarked on mutual funds in 1954, establishing the Templeton Growth Fund in Canada to cut the taxes of many shareholders - Canada then had no capital gains tax - and to emphasize the global reach of its investment strategy.
Branson predicts spectacular airline casualties Markets ... - (www.reuters.com) There will be "spectacular casualties" in the airline industry over the next 12 months, billionaire Richard Branson, the owner of Britain's No. 2 long-haul airline Virgin Atlantic [VA.UL], was quoted as saying on Saturday. The U.S. airline industry -- including Virgin America -- has been battered by soaring fuel costs that are pinching even the healthiest airlines. "The financial state of the world is just about the worst I've ever known it," Branson told The Times newspaper in an interview. "It's getting perilously close to being worse than the 1990s.
IndyMac Bancorp Is Seized by Federal Regulators - (globaleconomicanalysis.blogspot.com) - IndyMac Bancorp Inc. became the second-biggest federally insured financial company to fail today after a run by depositors left the California mortgage lender short on cash. IndyMac becomes the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC. Anyone over the FDIC limit at IndyMac can kiss it goodbye. There has been ample warning. Alt-A loans (AKA Liar Loans) and ridiculous lending policies did this company in.
The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem list," up from 76 in the first quarter of 2008. The total assets of "problem" institutions rose from $22.2 billion to $26.3 billion, the FDIC said. The FDIC does not publish a list of trouble banks out of concern it could spur a bank run
Schumer: Stop blaming me for IndyMac's failure - (www.latimes.com) – I agree that the bank would have imploded anyway as they were leveraged hundreds if not thousands to one. But Schumer is a jack-ass and has been defending and bailing out NY banking institutions. Why didn’t insider Schumer let Bear Stearns go under???? Sen. Chuck Schumer today went on another counterattack against federal banking regulators who’ve blamed him for helping cause the failure of IndyMac Bank.
At a news conference, the New York Democrat repeated his contention that the bank’s regulator had been "asleep at the switch." He said his public questioning of IndyMac’s financial health in late June merely stated the obvious.
"The administration is doing what they always do, blaming the fire on the person who called 911," Schumer said, according to the Associated Press’ story from the news conference in New York.
Shamed IndyMac CEO/Mortgage Fraudster Michael Perry Gave $2,300 to Corrupt Senator Chris Dodd - (www.ml-implode.com)
Do Fannie Mae and Freddie Mac Stock Charts Look Like Those of Well-Capitalized and Stable Companies?
In a dramatic statement released Sunday, the White House and Federal Reserve moved to give the mortgage giants the capital they need to survive the depression in the housing market and turmoil in financial markets that had left them dangling over a cliff.
Of most immediate importance, the Fed's board of governors voted to open up its emergency discount window to Fannie and Freddie. In addition, Treasury Secretary Henry Paulson announced that he will seek Congressional authorization to buy stock in the two companies and increase the government's credit line.
The $5 trillion mess: How we got to this point - (money.cnn.com) - They own or guarantee $5 trillion worth of mortgages - nearly half of all the country's outstanding home loan debt - and they're crashing. But not everybody is convinced they should be.
Fannie Mae and Freddie Mac are struggling with an investor loss of confidence so great that, while they're unlikely to go under, they could conceivably see their ability to function impaired. That would wreak yet more havoc on an already wrecked housing market - making loans tougher to come by and possibly pushing hundreds of billions of dollars in cost onto U.S. taxpayers.
The extent of their troubles is in debate. Several analysts and a former Federal Reserve governor have said the two companies desperately need to raise money to continue their business of buying and guaranteeing home mortgages.
Others, including Fannie and Freddie, their regulators, some Wall Street analysts, and Sen. Christopher Dodd, D - Conn., the chairman of the Senate Banking Committee, have defended the strength of the two companies.
"What's important are facts - and the facts are that Fannie and Freddie are in sound situation," Dodd said on CNN's Late Edition on Sunday. "They have more than adequate capital. They're in good shape. The chairman of the Federal Reserve has said as much. The Secretary of the Treasury has said as much."
Operation "Rescue Fannie" Underway - Paulson a Blatant Liar - (globaleconomicanalysis.blogspot.com) - On Friday Treasury Secretary Paulson Said Keep Fannie and Freddie in Current Form. U.S. Treasury Secretary Henry Paulson signaled that a government takeover of Fannie Mae and Freddie Mac won't be necessary, saying they should continue as shareholder-owned companies with federal charters. "Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission," Paulson said in a statement in Washington. Paulson's remarks indicate he wants to reassure shareholders they won't be wiped out by any government efforts to ensure the stability of the firms that own or guarantee almost half the $12 trillion in U.S. mortgages.
John Snow stepped into the fray with a statement Fannie Mae, Freddie Mac Followed 'Hedge Fund' Model. Former U.S. Treasury Secretary John Snow said that Fannie Mae and Freddie Mac have relied on leverage to fund their businesses in the same fashion as a hedge fund, and that the government should avoid taking them over. "Congress ought to be embarrassed" for years of delays in passing legislation aimed at strengthening regulation of the two companies, Snow, now chairman of New York-based buyout fund Cerberus Capital Management LP, said in a telephone interview. He said he suggested when in office that "the business model they were using was really the model of a hedge fund." The government-chartered companies, which grew to account for almost half of the $12 trillion in U.S. mortgages, were able to borrow at cheap rates because of an implicit federal guarantee, Snow said. His opposition to a full government takeover echoes the signal sent today by his successor, Treasury Secretary Henry Paulson.
US spells out Fannie-Freddie backstop plan - (news.yahoo.com/s/ap) - The Federal Reserve and the Treasury announced steps Sunday to shore up mortgage giants Fannie Mae and Freddie Mac, whose shares have plunged as losses from their mortgage holdings threatened their financial survival. The steps are also intended to send a signal to nervous investors worldwide that the government is prepared to take all necessary steps to prevent the credit market troubles that started last year from engulfing financial markets and further weakening the economy and housing markets. The Fed said it granted the Federal Reserve Bank of New York authority to lend to the two companies "should such lending prove necessary." They would pay 2.25 percent for any borrowed funds — the same rate given to commercial banks and big Wall Street firms.
Other Stories:
1,600 Percent Interest on Text Message Loans - (globaleconomicanalysis.blogspot.com)
Recession Fears In Australia - (globaleconomicanalysis.blogspot.com)
Nature of the Fannie Mae Bailout - (globaleconomicanalysis.blogspot.com)
U.S. Taxpayer Bailout of China Over Fannie Mae - (globaleconomicanalysis.blogspot.com)
US Treasury rescue for Fannie Mae and Freddie Mac - (www.ml-implode.com) - "US TREASURY secretary Hank Paulson is working on plans to inject up to $15 billion (£7.5 billion) of capital into Fannie Mae an...
Dani Rodrik: "Death of globalisation consensus" - (www.ml-implode.com) - "Even though Greg Mankiw claims in the New York Times today that " Economists are nearly unanimous in their support of an unfett...
The mortgage lender illusion - (www.ml-implode.com) - "It's dispiriting indeed to watch the U.S. financial system, supposedly the envy of the world, being taken to its knees. But tha...
The Silence of the Lenders - (www.ml-implode.com) - "...he says, the only guidance the lender provided was a suggestion from an employee of Countrywide’s “home retention team” that...
"What Would a Fannie/Freddie Conservatorship Look Like?" - (www.ml-implode.com) - "If the rumor du jour is correct, and the Treasury is going to announce plans to inject $15 billion into Fannie and Freddie befo...
March of the Bailouts: A Lesson courtesy of IndyMac - (www.ml-implode.com)
Nature of the Fannie Mae Bailout - (www.ml-implode.com)
Take Downs and Drawing the Wrong Straw - (www.ml-implode.com)
Update: State revokes all Lending, Escrow Licenses of Sadek - (www.ml-implode.com)
US: The Most Deceitful Form of Socialism? - (www.ml-implode.com)
Fed: No Discount Window for FNM, FRE - (www.ml-implode.com)
Loosen Your Stops, Tighten Your Bowels - (www.ml-implode.com)
Why Barron's Housing Cover Is So Terribly Wrong - (www.ml-implode.com)
Paulson Statement on Freddie Mac, Fannie Mae: Full Text - (www.bloomberg.com)
Fannie Mae, Freddie Mac Turmoil Pose New Economic `Headwind' - (www.bloomberg.com))
How Fallout Could Affect Main Street - (www.nytimes.com)
Bernanke tells Freddie discount window open: sources - (www.reuters.com)
ARM resets to hit peak this summer - (www.chicagotribune.com)
Many Retirees Face Prospect of Outliving Savings, Study Says - (www.washingtonpost.com)
Crisis Deepens as Big Bank Fails - (online.wsj.com)
Rescue plan for US mortgage giants - (www.ft.com)
Treasury, Fed take bold steps to back Freddie and Fannie - (www.reuters.com)
Overview: Equities gripped by bear market - (www.ft.com)
Race to prop up US mortgage giants - (www.ft.com)
Lending Eroded, Leaving Fannie and Freddie as Pillars - (www.nytimes.com)
S.E.C. Warns Wall Street: Stop Spreading the False Rumors - (www.nytimes.com)
Aluminium hits peak as China reduces output - (www.ft.com)
Housing woes spread to business properties - (www.denverpost.com)
Paulson Seeks Authority to Shore Up Fannie, Freddie - (www.bloomberg.com)
Paulson Statement on Freddie Mac, Fannie Mae: Full Text - (www.bloomberg.com)
Putting Their Houses in Order - (www.nytimes.com)
Washington, Wall St. weigh Fannie, Freddie help - (biz.yahoo.com/ap)
Rescue Debate: Paulson Insists Fannie, Freddie Holders Lose - (online.wsj.com)
U.S. Weighs Rescue of Mortgage Giants - (www.washingtonpost.com)
Behind the scenes contingency planning - (www.ft.com)
U.S. Announces Rescue Plan For Fannie Mae, Freddie Mac - (online.wsj.com)
Bleak choices for Fannie and Freddie - (www.ft.com)
Analysts say more U.S. banks will fail - (www.iht.com)
Slide gets steeper for magazine ads - (www.chicagotribune.com)
Auto Dealers Add Own Discounts - (online.wsj.com)
Senate Passes Housing Legislation - (online.wsj.com)
Airbus cautious of struggling carriers - (www.ft.com)
Protected by Washington, Fannie and Freddie Grew - (www.nytimes.com)
Freddie Mac and Fannie Mae future may rest with US Treasury - (www.telegraph.co.uk)
US Treasury rescue for Fannie Mae and Freddie Mac - (business.timesonline.co.uk)
Freddie Mac's Next Hurdle: Raise Cash - (www.washingtonpost.com)
Fannie, Freddie in Talks With Treasury About Funding - (www.bloomberg.com)
Treasury to Issue Statement Supportive of Mortgage Giants - (online.wsj.com)
Gas-guzzling SUVs and light trucks become an obstacle for marketers - (www.latimes.com)
Economic alarm bells for NZ government - (www.ft.com)
Fannie Mae and Freddie Mac in the mire - (www.telegraph.co.uk)
Fannie Mae Ugly - (online.wsj.com)
Fannie and Freddie are feeling unwell - (www.ft.com)
The Silence of the Lenders - (www.nytimes.com)
The fall of IndyMac - (money.cnn.com)
Could Freddie and Fannie be fini? - (www.sfgate.com)
The Fannie and Freddie Fallout - (www.nytimes.com)
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