Tagged: bailout

AIG backlash heats up

The heat continues to increase on insurance giant AIG, which got $182 billion in taxpayer bailouts yet gave out $165 million in bonuses.  New York Senator Chuck Schumer says President Obama’s pay czar should be given the power to recover the “outrageous” bonuses.  Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial […]

AIG breaks bonuses promises

Insurance giant AIG, bailed out by taxpayers to the tune of $180 billion, had promised to return $45 million of the $165 million in bonuses it paid despite the bailout.  But most of that remains unpaid, the Washington Post reports.  Former Federal Reserve Bank examiner Mark T. Williams, who teaches finance at BU’s School of […]

Citigroup repayment costs taxpayers

On the one hand Citigroup is repaying Uncle Sam that TARP bailout money, which is good for taxpayers.  On the other hand, they’re getting a multi-billion dollar tax break in the process.  Economics Professor Laurence Kotlikoff, a former senior economist in the White House Council of Economic Advisors, doesn’t like the tax breaks built into […]

BofA to repay TARP loans

Bank of America has received Fed approval to repay the $45 billion in Troubled Asset Relief Program bailout loans it got from taxpayers over the past year.  Former Federal Reserve Bank examiner Mark T. Williams, who teaches finance in the School of Management, says the payback might be too early. “Banks are beginning to earn their […]

GMAC needs more bailout

Troubled consumer finance company GMAC reportedly needs more taxpayer bailout money, on top of the $12.5 billion it’s already received.  Robert Bench, an ex-deputy Comptroller of the Currency and now senior fellow at the Law school’s Morin Center for Banking and Financial Law, says it’s understandable because GMAC concentrated most of its risk on a selected consumer […]

Remake Fannie & Freddie?

It’s reported that an overhaul of mortgage giants Fannie Mae and Freddie Mac may be in the works.  The Obama administration’s plan would be to strip them of billions in troubled loans and build a new structure to support the home-loan market.  Robert Bench, a former deputy Controller of the Currency, now a senior fellow at the […]

Bailed-out Citi raising salaries

Coping with a government bailout/buy-in and a share price down 84 percent from last year, Citigroup reportedly intends to raise base salaries as much as 50 percent to offset smaller annual bonuses.  School of Management Professor Fred Foulkes, director of the Human Resources Policy Institute, can discuss how this might go over with the Obama […]

Salary caps nixed for bailed-out firms

Reports say plans to cap salaries at firms getting bailout money is being nixed by the Obama administration, which will leave it to Congress to limit bonuses.  But the White House will name a “pay czar” to monitor bailed-out companies and will still push to revamp compensation practices in the financial industry.  School of Management Professor Fred […]

What about the bailed-out banks’ warrants?

With 10 large banks repaying the public billions in bailout money, it divorces the government from running the banks.  But Treasury still owns stock warrants in those banks, which could become valuable over time.  School of Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, thinks the warrants should be […]

Chrysler sale to Fiat set

With the Supreme Court declining to hear a creditors’ challenge to it, Fiat is set to purchase most of Chrysler’s assets which will lead the Italian automaker deeply into the American market.  School of Management Dean Louis Lataif, the former head of Ford Motors in Europe, can discuss the big-picture impact of the deal. Contact Louis […]