Personal Finance News Sep 2008

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Is It Time to Sell Your Foreign Stocks?
BusinessWeek Online - The stock prices of mortgage giants Fannie Mae and Freddie Mac have cratered. The bottom of the worst housing slump since the Great Depression hasn't been reached. Fears of inflation are mounting. (Tue, 02 Sep 2008 14:07:45 GMT)

Merrill Lynch hires mortgage executives
Reuters - Merrill Lynch & Co , battered by more than $40 billion of write-downs tied largely to mortgages, said on Tuesday it hired Michael Nierenberg from JPMorgan Chase & Co to head its mortgage and securitization businesses. (Tue, 02 Sep 2008 14:15:01 GMT)

GMAC to cut 5,000 jobs at ResCap mortgage unit
Reuters - GMAC LLC said on Wednesday it plans to cut 5,000 jobs at its Residential Capital LLC mortgage unit, or 60 percent of that work force, and shut its 200 GMAC Mortgage retail offices to combat persistently weak housing and credit markets. (Wed, 03 Sep 2008 17:07:56 GMT)

GMAC slashing work force, reduces mortgage lending
AP - Lender GMAC Financial Services said Wednesday it will close all of its 200 retail offices and lay off about 5,000 employees as part of plan to reduce its mortgage lending and servicing because of the housing market downturn. (Wed, 03 Sep 2008 20:16:53 GMT)

H&R Block posts smaller loss
Reuters - H&R Block Inc , the largest U.S. tax preparer, reported a quarterly loss that was 56 percent smaller than a year earlier on Wednesday, after shedding its money-losing mortgage operations to focus on its tax business. (Wed, 03 Sep 2008 20:50:22 GMT)

30-year mortgages dip slightly to 6.35 percent
AP - Rates on 30-year mortgages fell for a third straight week, dropping to the lowest level since mid-July. (Thu, 04 Sep 2008 16:59:48 GMT)

Lehman weighs real estate spinoff: report
Reuters - Lehman Brothers Holdings Inc is considering a plan to put some $32 billion of its commercial real estate and mortgage assets in a new company and spin it off, Bloomberg reported on its website on Thursday. (Thu, 04 Sep 2008 20:40:10 GMT)

Breeden details year of progress at H&R Block
AP - A year after orchestrating a takeover of H&R Block Inc.'s leadership, Richard Breeden gave shareholders an update Thursday on efforts to rejuvenate the tax preparation giant, saying some success has been made but the work is ongoing. (Thu, 04 Sep 2008 22:04:15 GMT)

Columbia Bancorp to close mortgage business, cut jobs
Reuters - Columbia Bancorp , the holding company for Columbia River Bank, said it plans to close its mortgage banking division, affecting about 39 jobs, as it strives to cut costs amid a difficult mortgage market. (Fri, 05 Sep 2008 10:56:52 GMT)

Home foreclosures reach record high
Reuters - Home foreclosures and the rate of homes entering the foreclosure process rose to record highs in the second quarter, the Mortgage Bankers Association said on Friday. (Fri, 05 Sep 2008 14:02:58 GMT)

Home loan troubles break records again
AP - An industry group says a record 9.2 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis continues to mount. (Fri, 05 Sep 2008 14:03:08 GMT)

Treasury near GSE bailout plan: report
Reuters - The U.S. Treasury Department is close to finalizing a plan to buttress mortgage finance companies Fannie Mae and Freddie Mac , the Wall Street Journal reported on Friday. (Fri, 05 Sep 2008 21:22:48 GMT)

US government to take over mortgage giants: reports
AFP - The US government is planning to put under strict federal control troubled mortgage giants Fannie Mae and Freddie Mac, fire their top executives and use federal funds to bail them out, US media reported on their websites. (Sat, 06 Sep 2008 04:05:09 GMT)

U.S. to take control of Fannie and Freddie: reports
Reuters - The U.S. government plans to put government sponsored mortgage finance companies Fannie Mae and Freddie Mac under federal control, the New York Times and Washington Post newspapers reported late Friday, in what could be the largest financial bailout in the nation's history. (Sat, 06 Sep 2008 05:04:16 GMT)

Government may soon back troubled mortgage giants
AP - The government is expected to take over Fannie Mae and Freddie Mac as soon as this weekend in a monumental move designed to protect the mortgage market from the failure of the two companies, which together hold or guarantee half of the nation's mortgage debt, a person briefed on the matter said Friday night. (Sat, 06 Sep 2008 12:38:09 GMT)

Treasury to ensure stable Fannie, Freddie: Barney Frank
Reuters - U.S. House Financial Services Committee Chairman Barney Frank said on Saturday that the U.S. Treasury Department plans to ensure the stability of mortgage finance giants Fannie Mae and Freddie Mac . (Sat, 06 Sep 2008 18:36:39 GMT)

Fannie, Freddie's boards meet Saturday to mull government plan
Reuters - The boards of mortgage finance companies Fannie Mae and Freddie Mac were set to meet on Saturday to discuss a government plan to place the companies under federal control, sources said. (Sat, 06 Sep 2008 18:44:02 GMT)

Fannie, Freddie blind to the bubble
AP - Mortgage giants Fannie Mae and Freddie Mac — despite their robust cadre of economists and mortgage experts — failed to heed warnings that the most dramatic housing bubble in U.S. history would burst. (Sat, 06 Sep 2008 21:41:09 GMT)

Treasury plan won't help Fannie, Freddie shareholders: Frank
Reuters - Fannie Mae and Freddie Mac shareholders, including preferred stockholders, will not fair well under a proposed U.S. Treasury takeover of the two housing finance companies, House Financial Services Committee Chairman Barney Frank told Reuters on Saturday. (Sat, 06 Sep 2008 21:49:06 GMT)

McCain backs government takeover of mortgage giants
AFP - Republican presidential hopeful John McCain backed a government takeover of two mortgage giants Saturday while his Democratic rival warned that taxpayers should not bail out their shareholders. (Sat, 06 Sep 2008 23:34:04 GMT)

Fannie, Freddie blind to the bubble
AP - Mortgage giants Fannie Mae and Freddie Mac — despite their robust cadre of economists and mortgage experts — failed to heed warnings that the most dramatic housing bubble in U.S. history would burst. (Sun, 07 Sep 2008 00:06:14 GMT)

Prosecutor becomes figure in mortgage mess
Reuters - Thomas O'Brien, the U.S. Attorney for California's Central District, is emerging as a likely prosecutor in criminal cases expected from the U.S. mortgage meltdown. (Sun, 07 Sep 2008 07:32:53 GMT)

Candidates weigh in on stabilizing Fannie, Freddie
AP - The historic takeover of Fannie Mae and Freddie Mac, which could come as soon as Sunday, moved to the forefront of the presidential campaign Saturday as candidates and congressional leaders seized on the enormous implications for taxpayers and the economy. (Sun, 07 Sep 2008 10:38:50 GMT)

US expected to detail Fannie Mae, Freddie Mac bailout
AFP - US Treasury Secretary Henry Paulson is expected to detail the government's plan to take over struggling mortgage giants Fannie Mae and Freddie Mac on Sunday, the Treasury announced. (Sun, 07 Sep 2008 13:09:32 GMT)

GSE plan expected at Treasury news conference
Reuters - The U.S. government was expected to take control of mortgage finance companies Fannie Mae and Freddie Mac on Sunday in its latest effort to shore up the slumping U.S. housing market. (Sun, 07 Sep 2008 14:01:09 GMT)

US takes over Fannie, Freddie
AFP - The US government took over mortgage giants Fannie Mae and Freddie Mac on Sunday, placing them in a "conservatorship" to help avert a financial system meltdown from the housing crisis. (Sun, 07 Sep 2008 16:33:20 GMT)

GSE rescue could scare bears
Reuters - Bears have reigned supreme on Wall Street so far in September thanks to growing concern about economies worldwide, but their grip on stocks faces a big challenge after the U.S. government's weekend seizure of control of mortgage finance giants Fannie Mae and Freddie Mac. (Sun, 07 Sep 2008 19:44:44 GMT)

Fannie, Freddie bailout offers bank stocks reprieve
Reuters - Financial stocks may rise on Monday after the U.S. government took over troubled mortgage companies Fannie Mae and Freddie Mac , but this may be only a temporary reprieve given the long list of woes banks are currently battling. (Sun, 07 Sep 2008 19:56:20 GMT)

AP - Bush says federal takeover of mortgage giants driven by "unacceptable risk" to economy. (Sun, 07 Sep 2008 20:08:51 GMT)

Bush: Takeover of housing giants 'critical'
AP - President Bush said Sunday that the historic federal government takeover of mortgage giants Fannie Mae and Freddie Mac is needed to keep them from failing, a risk he called "unacceptable" for an economy battered by housing and credit crises. (Sun, 07 Sep 2008 20:32:01 GMT)

S&P, Fitch slash Fannie, Freddie preferreds to junk
Reuters - Standard & Poor's and Fitch Ratings on Sunday cut the ratings on preferred stock of troubled housing finance companies Fannie Mae and Freddie Mac to junk status after dividends were eliminated in a takeover by the U.S. government. (Sun, 07 Sep 2008 21:21:14 GMT)

Futures soar after U.S. takes over GSEs
Reuters - Stock index futures surged on Sunday, pointing to a sharply higher open when Wall Street opens on Monday, after the U.S. government seized control of troubled mortgage finance companies Fannie Mae and Freddie Mac . (Sun, 07 Sep 2008 22:11:41 GMT)

US takes over Fannie, Freddie in bid to ease finance crisis
AFP - The US government has taken over ailing mortgage giants Fannie Mae and Freddie Mac, placing them in a "conservatorship" in a bid to avert a financial system meltdown from the housing crisis. (Mon, 08 Sep 2008 03:13:21 GMT)

Asian banks rally on Fannie, Freddie bailout
Reuters - Shares in Asian banks soared on Monday after the U.S. government took over Fannie Mae and Freddie Mac , reassuring investors worried about exposure to the mortgage giants' bonds and the value of other risky debt assets. (Mon, 08 Sep 2008 05:18:21 GMT)

China frets at U.S. risk after Fannie/Freddie bailout
Reuters - The U.S. Treasury's takeover of Fannie Mae and Freddie Mac is good news in the short term for China, the biggest holder of the giant mortgage lenders' debt, but Beijing's huge U.S. exposure still poses a serious risk, a prominent government researcher said on Monday. (Mon, 08 Sep 2008 06:06:56 GMT)

U.S. talks with Fannie, Freddie turned sour: sources
Reuters - Amicable talks between Fannie Mae and Freddie Mac and the U.S. mortgage finance companies' regulator about an aid package ended abruptly as policy-makers resolved in recent days to seize the firms, industry sources with knowledge of the events said. (Mon, 08 Sep 2008 06:11:47 GMT)

Fannie, Freddie deal helps some borrowers, not all
AP - The government's historic bailout of Fannie Mae and Freddie Mac on Sunday will be good news to homebuyers and some homeowners hoping to refinance if it leads to lower mortgage rates, as experts expect. (Mon, 08 Sep 2008 07:46:13 GMT)

European stocks soar in early trade, Paris up four percent
AFP - European stock markets surged in early trading on Monday, mirroring sharp gains won across Asia after the US government seized control of ailing mortgage giants Fannie Mae and Freddie Mac. (Mon, 08 Sep 2008 08:27:36 GMT)

Freddie, Fannie plan protects taxpayers: Paulson
Reuters - Treasury Secretary Henry Paulson said in an interview with U.S. radio broadast on Monday that a plan to take control of Freddie Mac and Fannie Mae had been structured in a way to protect U.S. taxpayers. (Mon, 08 Sep 2008 09:38:15 GMT)

Wall Street may cheer Fannie, Freddie bailout
AP - Wall Street finally got what it's been angling for: a bailout of Fannie Mae and Freddie Mac that could aid a recovery of the broken U.S. housing market and arrest a slide in stock and credit markets worldwide. (Mon, 08 Sep 2008 09:54:59 GMT)

McCain and Obama say Fannie, Freddie takeover needed
Reuters - Both presidential candidates Barack Obama and John McCain said on Sunday they see the federal takeover of mortgage finance companies Fannie Mae and Freddie Mac as necessary. (Mon, 08 Sep 2008 10:00:54 GMT)

Mortgage lender Nationwide announces merger
AP - The Nationwide Building Society, a British mortgage lender, said Monday it is taking over two smaller rivals. (Mon, 08 Sep 2008 10:53:34 GMT)

World stocks soar on US mortgage bailout
AFP - European and Asian stock markets surged Monday after the US government grabbed control of ailing mortgage giants Fannie Mae and Freddie Mac, easing fears of a world financial crisis, dealers said. (Mon, 08 Sep 2008 11:05:30 GMT)

Dollar rallies after US rescue for mortgage giants
AFP - The dollar rose against the euro and yen on Monday after US authorities bailed out two mortgage finance giants, easing investor worries over the future of global markets, dealers said. (Mon, 08 Sep 2008 11:18:00 GMT)

Fannie, Freddie: Feds Step In
BusinessWeek Online - With the nation riveted on what the next President will do, the current Administration showed on Sept. 7 that it's not ready to take its hands off the economy's steering wheel quite yet. The Bush Administration announced that it had seized control of Fannie Mae and Freddie Mac , two huge but dysfunctional companies whose financial difficulties were weighing down the U.S. housing market and threatening global financial upheaval. (Mon, 08 Sep 2008 12:08:42 GMT)

Washington Mutual ousts CEO Kerry Killinger
AP - Washington Mutual Inc., ravaged by losses from sour mortgages, replaced Kerry Killinger as chief executive of the nation's largest savings and loan on Monday, adding him to the growing list of banking bosses ousted by their boards. (Mon, 08 Sep 2008 12:43:20 GMT)

US government takes on big role in mortgage market
AP - Uncle Sam has just become the 800 pound gorilla in the U.S. mortgage market. The Bush administration announced Sunday it was seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis. (Mon, 08 Sep 2008 12:45:43 GMT)

British mortgage lender Nationwide snaps up struggling peers
AFP - Nationwide Building Society, the second biggest lender of home loans in Britain, said Monday it had agreed to buy two smaller peers struggling to cope with the global credit crunch. (Mon, 08 Sep 2008 13:05:40 GMT)

World stocks soar after Freddie, Fannie bailouts
AP - World stock markets soared Monday after Washington announced a bailout of mortgage giants Fannie Mae and Freddie Mac — a move that could help bolster a shaky U.S. housing market and renew global investor confidence. (Mon, 08 Sep 2008 14:14:47 GMT)

Fannie, Freddie shares dive, debt rallies on bailout
Reuters - Fannie Mae's and Freddie Mac's stocks took a dive while their debt soared Monday, as investors bet the U.S. government's takeover of the mortgage finance firms would wipe out shareholders but fully guarantee their bonds. (Mon, 08 Sep 2008 14:15:33 GMT)

Wall Street surges on Fannie, Freddie plans
Reuters - Stocks surged on Monday as investors bet that Washington's bailout of home finance companies Fannie Mae and Freddie Mac would help stabilize the housing market and the outlook for financials. (Mon, 08 Sep 2008 14:22:15 GMT)

Stocks surge on plan for mortgage giants
AP - Stocks surged Monday as investors rushed to lay bets on a broad economic recovery following the weekend announcement that the U.S. government will bail out mortgage giants Fannie Mae and Freddie Mac. The major indexes jumped, with the Dow Jones industrials gaining more than 250 points. (Mon, 08 Sep 2008 14:24:26 GMT)

US rescue contrasts with Europe's approach
FT.com - The US authorities' decision to place mortgage groups Fannie Mae (NYSE:FNM) and Freddie Mac into 'conservatorship' provides a sharp contrast to the 'tough love' policy announced by European authorities last week, says Ian Harnett at Absolute Strategy Research. (Mon, 08 Sep 2008 14:50:18 GMT)

Trichet calls for vigilance on credit risks, welcomes US bailout plan
AFP - Central banks must be on alert for risks from the global credit crisis and the US government bailout of ailing US mortgage giants Fannie Mae and Freddie Mac is welcome in this regard, the Group of 10 said on Monday. (Mon, 08 Sep 2008 14:54:20 GMT)

White House: GSE rescue protects financial system
Reuters - The White House said on Monday that the administration's rescue plan for troubled mortgage finance agencies Fannie Mae and Freddie Mac was necessary to prevent broader financial damage and was structured to limit costs to taxpayers. (Mon, 08 Sep 2008 15:43:18 GMT)

U.S. consumer credit rose in July: Fed
Reuters - U.S. consumer credit expanded at the slowest pace in seven months in July as banks tightened lending standards, a Federal Reserve report on Monday showed. (Mon, 08 Sep 2008 19:04:45 GMT)

Swift action a boon for mortgage bonds
FT.com - The seizure of Freddie Mac and Fannie Mae (NYSE:FNM) by the US Treasury boosted credit markets on Monday and prompted a buying frenzy in mortgage bonds that pushed rates sharply lower. (Mon, 08 Sep 2008 20:50:16 GMT)

Fannie Mae faces investor lawsuit
Reuters - Fannie Mae is the subject of an investor lawsuit seeking class-action status that accuses the mortgage giant of misrepresenting the company's capital needs, court documents filed on Monday said. (Mon, 08 Sep 2008 20:52:39 GMT)

Insight: State rescue is far from being universal economic cure
FT.com - The government takeover of the US mortgage agencies ends the period of acute uncertainty surrounding these institutions. (Mon, 08 Sep 2008 20:55:12 GMT)

Administration defends takeover of mortgage giants
AP - The White House said Monday that the federal takeover of troubled mortgage giants Fannie Mae and Freddie Mac could have been prevented if Congress had only acted on its recommendations for changing the system, but housing experts say it's more complicated than that. (Mon, 08 Sep 2008 21:08:31 GMT)

Fannie-Freddie rescue plan bolsters dollar
AFP - The dollar gathered strength Monday, hitting an 11-month high on the euro, as news of a US government takeover of ailing mortgage giants Fannie Mae and Freddie Mac eased economic jitters. (Mon, 08 Sep 2008 21:43:55 GMT)

Stocks rally on plan for mortgage giants
AP - Stocks rallied Monday as investors placed bets that a recovery in the financial and housing sectors is more likely to occur following the U.S. government's move to bail out mortgage giants Fannie Mae and Freddie Mac. The Dow Jones industrials gained nearly 300 points. (Mon, 08 Sep 2008 22:01:12 GMT)

Former Fannie Mae execs sued in investor complaint
Reuters - Four former top executives of Fannie Mae were sued on Monday, one day after the mortgage finance giant was seized by the U.S. government, in an investor lawsuit that claims the four lied about the company's financial position and artificially inflated its share price. (Mon, 08 Sep 2008 22:52:39 GMT)

Fannie, Freddie takeover offers recovery hope: analysts
AFP - The US takeover of struggling mortgage giants Fannie Mae and Freddie Mac offers hope for an easing of the credit and housing crunch while putting the government's finances on the line, analysts have said. (Tue, 09 Sep 2008 02:23:00 GMT)

McCain and Palin urge Fannie, Freddie restructuring
Reuters - Republican White House nominees John McCain and Sarah Palin would ensure mortgage giants Fannie Mae and Freddie Mac were permanently restructured and downsized, the pair wrote in The Wall Street Journal. (Tue, 09 Sep 2008 07:36:30 GMT)

European stocks pause for breath at open
AFP - European stock markets held steady at the opening of trade on Tuesday following surges the day before caused by the US bailout of former mortgage titans Fannie Mae and Freddie Mac. (Tue, 09 Sep 2008 09:01:11 GMT)

Fannie, Freddie need restructuring to limit risks: IMF
Reuters - The U.S. government's move to take control of Fannie Mae and Freddie Mac will help shore up the housing market, the banking system and the wider economy, a senior International Monetary Fund official said on Tuesday. (Tue, 09 Sep 2008 09:05:35 GMT)

Swiss Re has no further exposure to subprime risks: CEO
AFP - The world's largest reinsurer, Swiss Re, is out of danger from major exposure to the subprime mortgage crisis, the group's chief executive Jacques Aigrain said in remarks published Tuesday. (Tue, 09 Sep 2008 09:39:38 GMT)

Congress weighs the fate of Fannie, Freddie
AP - Treasury Secretary Henry Paulson said Congress should view the next few months as a "time out" in the highly charged debate over what to do with mortgage giants Fannie Mae and Freddie Mac. (Tue, 09 Sep 2008 10:30:32 GMT)

Dollar lower on profit-taking
AFP - The dollar fell versus the euro and yen Tuesday on profit-taking following strong gains on the back of a US government takeover of two beleaguered mortgage groups, dealers said. (Tue, 09 Sep 2008 11:11:56 GMT)

Blogs: What They're Saying About Fannie, Freddie
BusinessWeek Online - Skepticism swept over the financial blogosphere in response to the government's historic bailout of mortgage giants Fannie Mae and Freddie Mac announced on Sept. 7. (Tue, 09 Sep 2008 12:08:42 GMT)

Financial Stocks: Is It Safe Yet?
BusinessWeek Online - It wasn't hard to find skeptics on Wall Street on Sept. 8, the day after the federal government's weekend takeover of mortgage giants Fannie Mae and Freddie Mac . (Tue, 09 Sep 2008 12:08:42 GMT)

Dow, Nasdaq pare gains after housing data
Reuters - The Dow and the Nasdaq Composite Index pared gains in skittish trade on Tuesday following a report that showed a steeper-than-expected drop in pending sales of existing U.S. homes in July. (Tue, 09 Sep 2008 14:16:56 GMT)

GSE operations should be on federal budget: CBO
Reuters - The operations of mortgage finance companies Fannie Mae and Freddie Mac, which were placed into a federal conservatorship, should now be treated as part of the federal budget, the head of the Congressional Budget Office said on Tuesday. (Tue, 09 Sep 2008 14:39:41 GMT)

ALL BUSINESS: Bailout doesn't curb all credit woes
AP - The government doesn't want Fannie Mae or Freddie Mac to go broke, but it better start thinking about what happens if the rest of us do. (Tue, 09 Sep 2008 15:28:42 GMT)

CBO sees budget deficit rising next year
Reuters - The U.S. budget deficit will swell to record levels in 2009 as the "turbulent" economy cuts revenues and hikes government spending, a congressional report said on Tuesday in an assessment that does not include the possible costs of rescuing two gigantic mortgage companies. (Tue, 09 Sep 2008 16:30:15 GMT)

Insight: US mortgage U-turn may not be enough
FT.com - Turning points in bear markets are more often than not signposted by big U-turns in government policy. The de facto nationalisation of Fannie Mae (NYSE:FNM) and Freddie Mac by a pro-market Republican administration is a U-turn of huge proportions. The question, nonetheless, is whether it will be enough to put a floor under both credit and equity markets. (Tue, 09 Sep 2008 17:35:21 GMT)

Obama dismayed on big Fannie, Freddie exit packages
Reuters - Democratic presidential candidate Barack Obama said on Tuesday he was dismayed by reports that the ousted chief executives of Fannie Mae and Freddie Mac could receive multimillion-dollar severance packages. (Tue, 09 Sep 2008 17:59:52 GMT)

AIG shares fall on fresh mortgage market concerns
Reuters - Shares of American International Group Inc , the world's biggest insurer, fell 16 percent on Tuesday on fears that the company's large exposure to the mortgage markets could trigger the need to raise fresh capital. (Tue, 09 Sep 2008 19:18:17 GMT)

New York AG: 8 student lenders adopt new code
AP - Eight student loan companies agreed to adopt a code of conduct that bans deceptive marketing practices — such as offering prizes to students who sign up for loans — following an investigation by the state of New York, the state attorney general said Tuesday. (Tue, 09 Sep 2008 19:41:17 GMT)

Democrats question Fannie, Freddie CEO exit pay
Reuters - U.S. Democrats on Tuesday criticized the multimillion-dollar pay packages awarded to the former chief executives of Fannie Mae and Freddie Mac at a time when taxpayers could foot a massive bill for the companies' bailout. (Tue, 09 Sep 2008 20:50:11 GMT)

Paulson, Lockhart to testify in Senate on September 16
Reuters - U.S. Treasury Secretary Henry Paulson and the regulator for Fannie Mae and Freddie Mac are slated to testify at a Senate Banking Committee hearing on September 16, a source familiar with the hearing said on Tuesday. (Tue, 09 Sep 2008 21:03:13 GMT)

Fannie and Freddie bailout frustrates U.S. voters
Reuters - The Bush administration's bailout of U.S. mortgage giants Fannie Mae and Freddie Mac frustrated many voters who worried it would set a bad precedent and that well-paid executives would go scot-free. (Tue, 09 Sep 2008 21:04:44 GMT)

Obama warns on Fannie, Freddie golden parachutes
Reuters - Democratic presidential candidate Barack Obama warned U.S. regulators on Tuesday it would be "a gross violation of the public trust" if they did not use their power to block excessive severance payments to executives leaving Fannie Mae or Freddie Mac. (Tue, 09 Sep 2008 22:09:37 GMT)

Obama joins critics of Fannie, Freddie pay packets
Reuters - Democratic presidential contender Barack Obama on Tuesday denounced the possibility of rich exit pay packets for the outgoing chiefs of Fannie Mae and Freddie Mac as lawmakers weighed how to restructure the seized mortgage finance companies. (Tue, 09 Sep 2008 22:10:21 GMT)

Dollar falls on US economy worries
AFP - The dollar weakened against other major currencies Tuesday as investors worried about the health of the US economy after the nationalization of two mortgage finance giants over the weekend. (Tue, 09 Sep 2008 22:50:38 GMT)

ECB chief welcomes US rescue of mortgage giants
AP - European Central Bank President Jean-Claude Trichet on Wednesday welcomed the U.S. government's decision to rescue mortgage giants Fannie Mae and Freddie Mac. (Wed, 10 Sep 2008 11:15:47 GMT)

European stocks fall as Lehman posts massive write-downs
AFP - Europe's main stock markets fell Wednesday, while Wall Street rose, as ailing US investment bank Lehman Brothers unveiled huge write-downs linked to the subprime mortgage crisis. (Wed, 10 Sep 2008 13:59:54 GMT)

Energy, tech gains drive S&P, Nasdaq higher
Reuters - Stocks extended gains on Wednesday as gains in the energy and tech sectors drove the Nasdaq and S&P 500 indexes up more than 1 percent each. (Wed, 10 Sep 2008 14:12:17 GMT)

McCain, other lawmakers invested in GSEs: report
Reuters - Dozens of members of the U.S. Congress, including presidential candidate John McCain, had investments last year in Fannie Mae and Freddie Mac, possibly putting a keen edge on their interest in the companies' troubles, a watchdog group said on Wednesday. (Wed, 10 Sep 2008 20:16:30 GMT)

Washington Mutual tumbles 30 percent to 17-year low
Reuters - Washington Mutual Inc shares sank 30 percent to a 17-year low and the perceived risk of its debt soared on worries the largest U.S. savings and loan will not find a buyer or raise enough capital to combat soaring mortgage losses. (Wed, 10 Sep 2008 20:37:37 GMT)

How the major stock market indexes fared Wednesday
AP - Stocks ended an erratic session moderately higher Wednesday, lifted by buying in the energy, materials and consumer-staple sectors. Investors remained nervous, however, about the financial sector after Lehman Brothers Holdings Inc. said it plans to sell a majority stake in its investment management business and spin off mortgage assets. (Wed, 10 Sep 2008 21:01:51 GMT)

Health of largest U.S. financials improving: IIF
Reuters - The health of the largest U.S. financial firms is on the mend as the fallout from the subprime mortgage crisis begins to moderate, the managing director of a leading international banking lobby said on Thursday. (Thu, 11 Sep 2008 01:58:01 GMT)

AIG has $600 million Fannie, Freddie preferred: source
Reuters - American International Group Inc , the world's largest insurer, holds between $550 million and $600 million in Fannie Mae and Freddie Mac preferred shares, according to a source familiar with the investment. (Thu, 11 Sep 2008 14:46:56 GMT)

Riskier U.S. home loans fell in 2007: regulators
Reuters - Home loans to higher-risk borrowers fell sharply in 2007, as did some riskier practices such as layering "piggyback" mortgages to finance home purchases, U.S. regulators said in a report on Thursday. (Thu, 11 Sep 2008 15:44:41 GMT)

AIG has up to $600 mln in Fan, Fred preferred: source
Reuters - American International Group Inc , the world's largest insurer, has exposure to between $550 million and $600 million in Fannie Mae and Freddie Mac preferred shares, according to a source familiar with the investment. (Thu, 11 Sep 2008 15:59:30 GMT)

Democrats urge Fannie, Freddie halt foreclosures
Reuters - U.S. Senate Democrats on Thursday urged Fannie Mae and Freddie Mac to halt all pending foreclosure proceedings on mortgages they hold for at least 90 days. (Thu, 11 Sep 2008 18:42:20 GMT)

Washington Mutual sinks below $2, rallies by close
Reuters - Washington Mutual Inc shares sank below $2 for the first time since 1990 as anxiety grew about its capital needs and survival prospects, before staging a powerful late rally. (Thu, 11 Sep 2008 21:05:32 GMT)

Treasury says GSE guarantees last past 2009
Reuters - The Treasury will guarantee the mortgage securities and debt issued by Fannie Mae and Freddie Mac that currently exist and those issued at least into 2010, the Treasury said. (Thu, 11 Sep 2008 21:17:33 GMT)

AIG woes knock its market value below peers
Reuters - Fears that American International Group Inc's large mortgage exposure could trigger another round of losses has rankled investors so much that the insurer has lost its iron grip as the world's industry leader by market value. (Fri, 12 Sep 2008 01:16:08 GMT)

WaMu says capital is sufficient to fund operations
AP - Washington Mutual Inc. said Thursday it will take another multibillion write-down for bad bets on mortgage securities but insisted it has adequate capital to fund its operations amid concern about the thrift's financial stability. (Fri, 12 Sep 2008 04:37:38 GMT)

White House keeps Fannie, Freddie off budget
Reuters - The director of the White House Budget Office on Friday said that operations of mortgage companies Fannie Mae and Freddie Mac seized by the government last week should not be treated as part of the federal budget. (Fri, 12 Sep 2008 18:45:44 GMT)

Wall St. ends flat amid Lehman vigil; oil a boost
Reuters - Stocks closed little changed on Friday in day of whipsaw moves as uncertainty over the fate of troubled investment bank Lehman Brothers kept investors anxious about the health of the U.S. financial system. (Fri, 12 Sep 2008 20:37:22 GMT)

AIG could hold investor call as soon as Monday: source
Reuters - Under increasing pressure from shareholders, American International Group could announce details of its turnaround plan much sooner than expected, including possible asset sales and how it will shore up capital, according to a source familiar with developments. (Fri, 12 Sep 2008 22:19:57 GMT)

Rescue or folly? Analysts debate Fannie-Freddie takeover
AFP - The rescue of mortgage giants Fannie Mae and Freddie Mac may be a master stroke that averts a global financial calamity, or one of the biggest economic boondoggles in history, analysts say. (Sat, 13 Sep 2008 16:01:07 GMT)

Regulators set to review Fannie, Freddie exit pay
Reuters - Financial regulators have decided how multi-million dollar severance packages for the departing chief executives of mortgage giants Fannie Mae and Freddie Mac could be limited. (Sat, 13 Sep 2008 18:20:35 GMT)

AIG to sell assets including aircraft leasing: report
Reuters - American International Group Inc, left with deep financial scars from losses on guarantees it wrote to cover mortgage-linked securities, is expected to sell off assets, including a profitable aircraft leasing arm, the Wall Street Journal report on Sunday. (Sun, 14 Sep 2008 22:27:34 GMT)

Financial hurricane victim Lehman waited too long
AP - If the mortgage meltdown is like a financial hurricane, then think of Lehman Brothers as a casualty that waited too long to cry for help. (Mon, 15 Sep 2008 02:02:24 GMT)

Fannie, Freddie CEOs denied exit bonuses: report
Reuters - U.S. regulators will not allow mortgage giants Fannie Mae and Freddie Mac to pay their departing chief executives multimillion-dollar severance packages outlined in their contracts, The Washington Post reported on Sunday. (Mon, 15 Sep 2008 03:08:21 GMT)

Lehman bankruptcy shakes world financial system
AFP - Lehman Brothers declared itself bankrupt Monday and Wall Street rival Merrill Lynch had to be taken over in a new financial earthquake that sent global markets into a slump. (Mon, 15 Sep 2008 10:07:55 GMT)

National City wins OK for $7 billion
Reuters - National City Corp , a U.S. Midwest regional bank battered by mortgage losses, has won stockholder approval to authorize new shares to allow for a $7 billion capital infusion, the bank said on Monday. (Mon, 15 Sep 2008 17:15:39 GMT)

Feds to offer housing relief to disaster victims
AP - The federal government will offer a three month moratorium on mortgage foreclosures that are insured by the Federal Housing Authority to residents living in Texas and Louisiana disaster areas. (Mon, 15 Sep 2008 18:52:43 GMT)

S&P cuts Washington Mutual credit rating to junk
Reuters - Standard & Poor's on Monday cut its ratings on Washington Mutual Inc into junk territory, citing exposures the bank has to bad mortgage debt and volatile markets. (Mon, 15 Sep 2008 20:56:09 GMT)

Holders of preferred shares to sue Fannie Mae
Reuters - A California law firm will sue Fannie Mae on Tuesday on behalf of holders of the mortgage finance company's preferred shares, a lawyer with the firm said late on Monday. (Tue, 16 Sep 2008 00:06:28 GMT)

Washington Mutual cut to junk by S&P
Reuters - Washington Mutual Inc , was downgraded to "junk" status on Monday by Standard & Poor's amid concern about mortgage losses, causing shares of the largest U.S. savings and loan to slide after-hours following a 27 percent plunge in regular trading. (Tue, 16 Sep 2008 01:05:44 GMT)

Fannie, Freddie CEOs eligible for 401k benefits: report
Reuters - The recently ousted chief executives of Fannie Mae and Freddie Mac are eligible for the pensions and 401k savings plans they built up while working for the mortgage giants, The Wall Street Journal said, citing a regulatory official. (Tue, 16 Sep 2008 07:05:04 GMT)

Congress weighs new regulations amid crisis
AP - A Congress criticized for being asleep at the switch while financial problems festered is eyeing tough new regulations for investment banks and a new government role in the mortgage market as Wall Street reels from another round of collapses. (Tue, 16 Sep 2008 11:13:57 GMT)

Insight: Dragon of moral hazard is going to take some impaling
FT.com - The nationalisation of Fannie Mae (NYSE:FNM) and Freddie Mac, and the bankruptcy of Lehman Brothers (NYSE:LEH) take us into the most dangerous financial territory since the 1930s. Of course there are similarities to earlier crises. The attempts by Fannie and Freddie to trade their way out of problems on an outrageously thin capital base are redolent of the savings and loan fiasco of the 1980s. ... (Tue, 16 Sep 2008 19:55:24 GMT)

Obama accuses McCain of ignoring Wall St. excesses
Reuters - Democratic presidential candidate Barack Obama sought on Tuesday to link his Republican rival to the turmoil sweeping Wall Street, and John McCain fired back that Obama had close ties to the troubled mortgage industry. (Tue, 16 Sep 2008 22:35:38 GMT)

August housing starts at 17-1/2-year low
Reuters - Construction starts on new U.S. homes plummeted to a 17-1/2-year low during August as builders scaled back sharply to try to cope with the worst slump in U.S. housing since the Great Depression. (Wed, 17 Sep 2008 12:32:48 GMT)

Housing starts at 17-1/2-year low
Reuters - Construction starts on new homes plunged to a 17-1/2-year low during August as builders scaled back sharply to try to cope with the worst slump in U.S. housing since the Great Depression. (Wed, 17 Sep 2008 13:01:54 GMT)

Lloyds in advanced talks to buy HBOS
Reuters - British bank Lloyds TSB is in advanced talks to buy domestic rival HBOS Plc , HBOS said on Wednesday, to create a 28 billion pound ($50 billion) mortgage giant. (Wed, 17 Sep 2008 13:16:56 GMT)

HBOS confirms talks on selling to Lloyds TSB
AP - Embattled mortgage lender HBOS PLC confirmed Wednesday that it is in advanced talks about being taken over Lloyds TSB PLC in what would be a further reshaping of the financial industry amid the credit crisis. (Wed, 17 Sep 2008 14:00:32 GMT)

Financial storm rages with HBOS as latest victim
AFP - The global financial firestorm claimed a fresh victim Wednesday as top British mortgage lender HBOS said it was in takeover talks after a huge US bailout of insurer AIG helped underpin volatile share prices. (Wed, 17 Sep 2008 14:11:11 GMT)

Morgan Stanley and Goldman slide, HBOS in takeover talks
Reuters - Shares of Wall Street firms Morgan Stanley and Goldman Sach plummeted on Wednesday and the UK's biggest mortgage lender, HBOS Plc, looked set to be bought as signs of financial industry distress abounded. (Wed, 17 Sep 2008 14:14:36 GMT)

Insuring Your Investments
The Motley Fool - Recent events have called to mind the Great Depression and that era's run on bank deposits, which forced many financial institutions to close. Younger investors may remember the savings and loan crisis of the 1980s, in which savings institutions were too aggressive in obtaining deposits and making risky loans, forcing many of them to shut down. Numerous small life-insurance companies and other financial institutions have been forced to close due to insolvency. (Wed, 17 Sep 2008 16:39:30 GMT)

Lloyds TSB, HBOS reach merger deal: reports
AFP - Lloyds TSB has reached a deal to merge with HBOS, Britain's biggest mortgage lender, after the latter's shares plummeted for a third day running, British media reported Wednesday. (Wed, 17 Sep 2008 20:42:14 GMT)

Applications to refinance home mortgages surge
AP - Homeowners rushed to take advantage of last week's drop in interest rates following the government's takeover of Fannie Mae and Freddie Mac, but rates are rising again on investor fears about the eroding conditions in financial markets. (Wed, 17 Sep 2008 20:54:14 GMT)

HBOS reaches merger deal with Lloyds TSB: reports
AFP - HBOS, Britain's biggest mortgage lender, has reached a deal to merge with its rival Lloyds TSB, media reports said Wednesday, after the lender's shares plummeted for a third day running. (Wed, 17 Sep 2008 21:02:45 GMT)

Washington Mutual is for sale: sources
Reuters - Washington Mutual Inc , the giant U.S. savings and loan beleaguered by mortgage losses, has put itself up for sale, sources familiar with the matter said on Wednesday. (Wed, 17 Sep 2008 22:52:52 GMT)

Lloyds confirms $22 billion takeover deal of HBOS
AP - Lloyds TSB PLC on Thursday announced a $21.85-billion deal to take over struggling HBOS PLC, Britain's largest mortgage lender. (Thu, 18 Sep 2008 09:04:38 GMT)

Lloyds seals $22 billion rescue deal for HBOS
Reuters - Lloyds TSB sealed a rescue takeover of HBOS Plc on Thursday to create a dominant British mortgage and savings bank in a $22 billion deal helped through by the government. (Thu, 18 Sep 2008 10:59:54 GMT)

Central banks launch $300 billion assault on credit crisis
AFP - Central banks around the world on Thursday threw more than 300 billion dollars into the fight against the credit crisis as speculation grew over Wall Street legend Morgan Stanley and a top British bank was forced into a merger. (Thu, 18 Sep 2008 12:29:15 GMT)

WaMu still weighing sale, capital raising: sources
Reuters - Washington Mutual , the large U.S. savings and loan beleaguered by mortgage losses, continues to explore all options, such as talking to potential buyers or raising capital, sources familiar with the situation said on Thursday. (Thu, 18 Sep 2008 21:58:52 GMT)

Obama urges emergency steps for housing market
Reuters - Presidential candidate Barack Obama urged the Federal Reserve and the Treasury on Thursday to take emergency steps to keep credit flowing to the troubled housing market, saying it would help stem the crisis sweeping financial markets. (Thu, 18 Sep 2008 22:25:17 GMT)

Freddie Mac and Fannie Mae PACs on Capitol Hill
AP - Highest congressional career totals for contributions from PACs tied to Freddie Mac and Fannie Mae: (Fri, 19 Sep 2008 09:18:07 GMT)

World markets soar on possible US rescue package
AP - Global stock markets roared higher on Friday after news of a possible U.S. government plan to rescue banks from toxic mortgage debt raised a collective sense of hope amid the world's worst financial crisis in decades. (Fri, 19 Sep 2008 11:54:35 GMT)

Buy, Sell, or Stay Put? Advice from the Pros
BusinessWeek Online - If you're feeling pummeled by market mayhem, you're not alone. With Lehman Brothers (leh.) filing for bankruptcy, Merrill Lynch selling out, and AIG getting a government bailout, investors have been knocked for a loop. Financial advisers have been fielding phone calls from panicked clients, but the smarter ones called their clients first to put things in perspective. "My issue with my clients is: Are they getting to a place where they cannot sleep?" says David Diesslin, a financial planner in Fort Worth. ... (Fri, 19 Sep 2008 12:08:42 GMT)

Toxic-debt plan, short-selling curbs lift markets
Reuters - The U.S. government pledged $50 billion to guarantee money-market mutual funds, curbed short-selling and crafted a sweeping plan to mop up toxic mortgage debt, sending global stock markets soaring. (Fri, 19 Sep 2008 14:11:48 GMT)

Paulson: Fannie, Freddie to buy more mortgages
AP - Treasury Secretary Henry Paulson says mortgage giants Fannie Mae and Freddie Mac will step up their purchases of mortgage-backed securities to help provide support to the crippled housing market. (Fri, 19 Sep 2008 14:15:59 GMT)

Paulson urges Congress action on mortgage debt plan
Reuters - U.S. Treasury Secretary Henry Paulson, leading a push for a taxpayer-funded plan to contain the credit market crisis, said on Friday he would ask Congress to take action on this next week and that the Treasury was taking immediate steps in the meantime. (Fri, 19 Sep 2008 15:18:51 GMT)

Treasury to double MBS purchases to $10 billion
Reuters - The U.S. Treasury intends to double its planned purchases of mortgage-backed securities to $10 billion this month as part of its broad plan to stabilize markets and deal with problem bank assets. (Fri, 19 Sep 2008 19:30:38 GMT)

Government steps to head off run on money funds
AP - The federal government on Friday stepped in to bolster the teetering $3 trillion money-market mutual fund industry and stem a wave of withdrawals that resembled a Depression-era run on the banks — sparked largely by panicked institutional clients rather than individual investors in what are normally considered to be the safest of investments. (Fri, 19 Sep 2008 21:11:40 GMT)

U.S. launches all-out attack on credit crisis
Reuters - The United States surged into action on Friday to launch an all-out attack against the worst financial crisis since the Great Depression, readying a plan to tap hundreds of billions of dollars in taxpayer funds to buy up toxic mortgage-related debt. (Fri, 19 Sep 2008 21:51:35 GMT)

Treasury could buy debt for 2 years under plan: report
Reuters - The U.S. Treasury would have authority to buy whole loans, collateralized debt obligations and mortgage-backed securities under an evolving financial market rescue plan, CNBC reported on Friday, citing an unnamed Treasury official. (Fri, 19 Sep 2008 22:08:01 GMT)

U.S. to propose $500-$800 billion asset-buy plan: sources
Reuters - The U.S. Treasury will propose a $500 billion to $800 billion government program to take toxic mortgage-related assets off the books of U.S. financial firms, banking industry sources said on Friday. (Sat, 20 Sep 2008 03:01:44 GMT)

U.S. launches all-out attack on credit crisis
Reuters - The United States surged into action on Friday to launch an all-out attack against the worst financial crisis since the Great Depression, readying a plan to tap hundreds of billions of dollars in taxpayer funds to buy up toxic mortgage-related debt. (Sat, 20 Sep 2008 04:26:26 GMT)

4 Fannie execs depart; organization restructured
AP - Mortgage finance giant Fannie Mae, taken over by the government earlier this month, announced Friday the resignations of four senior executives and said it was restructuring its organization. (Sat, 20 Sep 2008 10:03:12 GMT)

U.S. readies massive toxic-debt plan
Reuters - The U.S. government is preparing to mop up hundreds of billions of dollars in bad mortgage debt, after curbing short-selling and guaranteeing mutual funds in an effort to stabilize financial markets. (Sat, 20 Sep 2008 12:01:56 GMT)

Details of $700 billion financial rescue proposal
AP - The Bush administration is asking Congress for $700 billion to buy up troubled mortgage-related assets from U.S. financial institutions. According to a draft obtained Saturday by The Associated Press, the proposal would: (Sat, 20 Sep 2008 16:26:40 GMT)

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