Weekly Review Quiz as of 2008-08-14
... 3. Treasury Secretary Henry Paulson announced plans Sunday to a) take control of troubled mortgage giants Fannie Mae and Freddie Mac b) give management control of Fannie Mae and Freddie Mac to their regulator, the Federal Housing Finance Agency c) replace the chief executives of Fannie Mae and Fredd ...
... 3. Treasury Secretary Henry Paulson announced plans Sunday to a) take control of troubled mortgage giants Fannie Mae and Freddie Mac b) give management control of Fannie Mae and Freddie Mac to their regulator, the Federal Housing Finance Agency c) replace the chief executives of Fannie Mae and Fredd ...
What Caused This Mess? Bad Laws Built Up Over Time
... We Could Not See the Forest for the Trees 1938—Law put more risk of mortgage default on the government through Fannie Mae (Federal National Mortgage Association). Charted by Congress. It issues bonds; revenues used to buy mortgage from savings and loans, thereby insulating them from mortgage risk. 1 ...
... We Could Not See the Forest for the Trees 1938—Law put more risk of mortgage default on the government through Fannie Mae (Federal National Mortgage Association). Charted by Congress. It issues bonds; revenues used to buy mortgage from savings and loans, thereby insulating them from mortgage risk. 1 ...
Causes of the Financial Crisis
... – Largest bank failure in US history (Washington Mutual savings & loan) – Largest bankruptcy in American history (Lehman Brothers investment bank) – Failure of Fannie Mae and Freddie Mac (together owned/guaranteed roughly half of all mortgages in U.S.) ...
... – Largest bank failure in US history (Washington Mutual savings & loan) – Largest bankruptcy in American history (Lehman Brothers investment bank) – Failure of Fannie Mae and Freddie Mac (together owned/guaranteed roughly half of all mortgages in U.S.) ...
Slide 1
... It is simplistic because Democrats have been a big part of the problem, in part by supporting governmental distortions of the marketplace through mortgage giants Fannie Mae and Freddie Mac, whose reckless lending practices necessitated a $200 billion government rescue last month. It is dangerous bec ...
... It is simplistic because Democrats have been a big part of the problem, in part by supporting governmental distortions of the marketplace through mortgage giants Fannie Mae and Freddie Mac, whose reckless lending practices necessitated a $200 billion government rescue last month. It is dangerous bec ...
How Housing Policy Hurts the Middle Class
... subsidizing loans that borrowers couldn't otherwise afford. This encouraged housing speculation supported by financial leverage. Ultimately, taxpayers got the bill. Housing's 2008 collapse led to the U.S. Treasury takeover of Fannie's and Freddie's obligations even as the Federal Housing Administra ...
... subsidizing loans that borrowers couldn't otherwise afford. This encouraged housing speculation supported by financial leverage. Ultimately, taxpayers got the bill. Housing's 2008 collapse led to the U.S. Treasury takeover of Fannie's and Freddie's obligations even as the Federal Housing Administra ...
Slide 1
... Faulty Assumptions and Reliance on Ratings Agencies Severe Under-pricing of Risk Most of the Experts Missed It Lessons Likely to Be Forgotten ...
... Faulty Assumptions and Reliance on Ratings Agencies Severe Under-pricing of Risk Most of the Experts Missed It Lessons Likely to Be Forgotten ...
Financial crisis
... 2001 to June 2003, the Fed's 13 consecutive times to cut the federal funds rate, the interest rate from 6.5% to 1%, the lowest level in history, and to stay at the 1% level for a year. Low interest rates lead the American people to take the savings invested assets, the bank loans too much, which led ...
... 2001 to June 2003, the Fed's 13 consecutive times to cut the federal funds rate, the interest rate from 6.5% to 1%, the lowest level in history, and to stay at the 1% level for a year. Low interest rates lead the American people to take the savings invested assets, the bank loans too much, which led ...
Bailout Bill
... Due to the higher probability of foreclosures with subprime borrowers, lenders had to charge higher interest rates. One way they did this was to use adjustable rate mortgages (ARM) which have low interest rates in the first couple of years and higher ones in later years. Beginning in 2006 home value ...
... Due to the higher probability of foreclosures with subprime borrowers, lenders had to charge higher interest rates. One way they did this was to use adjustable rate mortgages (ARM) which have low interest rates in the first couple of years and higher ones in later years. Beginning in 2006 home value ...
Some comments/observations: Borrower behaviour, mortgage terminations and the price of residential mortgages”
... Secondary mortgage market established. 1929 crash ended the real-estate boom - many private guarantee companies forced into insolvency as home prices collapsed. Defaults on mortgages because borrowers could not make final balloon payment or to roll over their mortgage due to low market value o ...
... Secondary mortgage market established. 1929 crash ended the real-estate boom - many private guarantee companies forced into insolvency as home prices collapsed. Defaults on mortgages because borrowers could not make final balloon payment or to roll over their mortgage due to low market value o ...
The Reckoning NY Times
... For more than a decade, the former Federal Reserve Chairman Alan Greenspan has fiercely objected whenever derivatives have come under scrutiny in Congress or on Wall Street. “What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to trans ...
... For more than a decade, the former Federal Reserve Chairman Alan Greenspan has fiercely objected whenever derivatives have come under scrutiny in Congress or on Wall Street. “What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to trans ...
Percentage of Net New Households Between 2010 and 2020
... The GSEs have nearly paid back the full amount they borrowed from Treasury in 2008, $187 billion. As a result of this, and the fact that Fannie and Freddie have been in conservatorship for nearly 6 years, there has been a significant push to reform the GSEs. ...
... The GSEs have nearly paid back the full amount they borrowed from Treasury in 2008, $187 billion. As a result of this, and the fact that Fannie and Freddie have been in conservatorship for nearly 6 years, there has been a significant push to reform the GSEs. ...
Buying a home
... Federal Home Loan Bank of Pittsburgh Who are we? • Government Sponsored Enterprise (GSE) • Cooperative Ownership • Wholesale Banking ...
... Federal Home Loan Bank of Pittsburgh Who are we? • Government Sponsored Enterprise (GSE) • Cooperative Ownership • Wholesale Banking ...
www.financialexecutives.org
... $25.0 Billion in US Loans available to US auto makers FASB Statement No. 157 reinterpreted IRS revised NOL rules for Bank mergers ...
... $25.0 Billion in US Loans available to US auto makers FASB Statement No. 157 reinterpreted IRS revised NOL rules for Bank mergers ...
499Beaty10Presentation
... “Too Big to Fail” • Sub prime industry collapse • Financial Institutions began to collapse also • Bear Stearns acquired by J.P. Morgan • Investment banks reported large losses • Banks stop lending to each other • Leman Brothers collapse • Merrill Lynch sold to Bank of America ...
... “Too Big to Fail” • Sub prime industry collapse • Financial Institutions began to collapse also • Bear Stearns acquired by J.P. Morgan • Investment banks reported large losses • Banks stop lending to each other • Leman Brothers collapse • Merrill Lynch sold to Bank of America ...
Troubled Times: How We Got There and What Lies Ahead
... 2002 Sarbanes-Oxley had the unintended consequence of making the issuance of corporate bonds more difficult Lack of regulation regarding mortgage securities, other securitized bonds, swaps, hedge funds Where was the SEC when Lehman went to 44:1 leverage? Both administrations (Clinton and Bush) leane ...
... 2002 Sarbanes-Oxley had the unintended consequence of making the issuance of corporate bonds more difficult Lack of regulation regarding mortgage securities, other securitized bonds, swaps, hedge funds Where was the SEC when Lehman went to 44:1 leverage? Both administrations (Clinton and Bush) leane ...
FINAL The Sword of Damocles FOR ADOBE
... or a dollar crisis. We believe such forecasts are premature. For the moment it is sufficient to note that the risks of such developments have been elevated. It will likely take several years, if ever, for the increased federal involvement to metastasize into a full-blown economic crisis. That said, ...
... or a dollar crisis. We believe such forecasts are premature. For the moment it is sufficient to note that the risks of such developments have been elevated. It will likely take several years, if ever, for the increased federal involvement to metastasize into a full-blown economic crisis. That said, ...
Financial Crisis In US
... Tighter lending, and increased spreads on interest rates Contracted liquidity in the global credit markets and banking system ...
... Tighter lending, and increased spreads on interest rates Contracted liquidity in the global credit markets and banking system ...
Document
... cannot pay back the mortgage loans, and since other financial institutions have failed. Other banks now will not lend to them. This is a “credit crunch.” ...
... cannot pay back the mortgage loans, and since other financial institutions have failed. Other banks now will not lend to them. This is a “credit crunch.” ...
Reporting Considerations
... Treasury. This opinion had left the agencies unable to pay dividends on their common and preferred stock. In past years, Fannie Mae and Freddie Mac preferred and common stock had been held (in many cases prior to their defaults as long-term holdings) by various entities, including hedge funds, banks ...
... Treasury. This opinion had left the agencies unable to pay dividends on their common and preferred stock. In past years, Fannie Mae and Freddie Mac preferred and common stock had been held (in many cases prior to their defaults as long-term holdings) by various entities, including hedge funds, banks ...
In Rescue to Stabilize Lending, U.S. Takes Over Mortgage Finance
... interest payments on the debt, now held by foreign central banks, financial institutions, pensions funds and others. The Treasury will force both companies to shrink their portfolios over the long term; they now hold or guarantee about half of the country’s mortgages. In addition, the government pla ...
... interest payments on the debt, now held by foreign central banks, financial institutions, pensions funds and others. The Treasury will force both companies to shrink their portfolios over the long term; they now hold or guarantee about half of the country’s mortgages. In addition, the government pla ...
Moderate Rehabilitation (Mod Rehab) Supplemental
... Standard third-party reports, including Phase I Environmental Site Assessment, and a Property Condition Assessment, may not be required if certain conditions are met. ...
... Standard third-party reports, including Phase I Environmental Site Assessment, and a Property Condition Assessment, may not be required if certain conditions are met. ...
A summary of financial crisis in 2008
... A summary of financial crisis in 2008 • The fallout within the financial industry in 2008 has caused “credit crunch” in the U.S… A series of bank and insurance company failures triggered a financial crisis that effectively halted global credit markets and required unprecedented government intervent ...
... A summary of financial crisis in 2008 • The fallout within the financial industry in 2008 has caused “credit crunch” in the U.S… A series of bank and insurance company failures triggered a financial crisis that effectively halted global credit markets and required unprecedented government intervent ...
Fixed-Rate Mortgage Loans
... (50 pad sites for Manufactured Housing Communities) Credit-worthy single asset U.S. borrower with U.S. ownership Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent. ...
... (50 pad sites for Manufactured Housing Communities) Credit-worthy single asset U.S. borrower with U.S. ownership Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent. ...
Federal takeover of Fannie Mae and Freddie Mac
The federal takeover of Fannie Mae and Freddie Mac refers to the placing into conservatorship of government-sponsored enterprises Fannie Mae and Freddie Mac by the U.S. Treasury in September 2008. It was one of the financial events among many in the ongoing subprime mortgage crisis.On September 6, 2008, the director of the Federal Housing Finance Agency (FHFA), James B. Lockhart III, announced his decision to place two Government-sponsored enterprises (GSEs), Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), into conservatorship run by the FHFA.At the same press conference, United States Treasury Secretary Henry Paulson, stated that placing the two GSEs into conservatorship was a decision he fully supported, and that he advised ""that conservatorship was the only form in which I would commit taxpayer money to the GSEs."" He further said that ""I attribute the need for today's action primarily to the inherent conflict and flawed business model embedded in the GSE structure, and to the ongoing housing correction.""The same day, the Federal Reserve Bank chairman Ben Bernanke stated in support: ""I strongly endorse both the decision by FHFA Director Lockhart to place Fannie Mae and Freddie Mac into conservatorship and the actions taken by Treasury Secretary Paulson to ensure the financial soundness of those two companies.""The following day, Herbert M. Allison was appointed chief executive of Fannie Mae. He came from TIAA-CREF.
