Banking – Page 130 – Infinite Unknown

Chaos on Wall Street

July 20, 2008April 3, 2008 by Infinite

THE BAILOUT BOYS: S.E.C. Chairman Christopher Cox (left) with Paulson, President Bush and Bernanke.

The big banks’ fear of big losses is threatening to bring down the entire system, with dire consequences for all of us. Here’s what’s going on, and what we can do about it.

(Fortune Magazine) — What in the world is going on here? Why is Washington spending billions to bail out Wall Street titans while leaving struggling homeowners to fend for themselves? Why are the Federal Reserve and the Treasury acting as if they’re afraid the world may come to an end, while the stock market seems much less concerned? And finally, what does all this mean to those of us who aren’t financial professionals?

Okay, take a few breaths, pour yourself a beverage of your choice, and I’ll tell you what’s happening – and what I think is going to happen. Although I expect these problems will resolve themselves without a catastrophic meltdown, I’ll also tell you why I’m more nervous about the world financial system now than I’ve ever been in my 40 years of covering business and markets.

Wall Street fears for next Great Depression

July 20, 2008March 19, 2008 by Infinite

Wall Street is bracing itself for another week of roller-coaster trading after more than $300bn (£150bn) was wiped off the US equity markets on Friday following the emergency funding package put together by the Federal Reserve and JPMorgan Chase to rescue Bear Stearns.

One UK economist warned that the world is now close to a 1930s-like Great Depression, while New York traders said they had never experienced such fear. The Fed’s emergency funding procedure was first used in the Depression and has rarely been used since.

A Goldman Sachs trader in New York said: “Everyone is in a total state of shock, aghast at what is happening. No one wants to talk, let alone deal; we’re just standing by waiting. Everyone is nervous about what is going to emerge when trading starts tomorrow.”

Foreigners buy stakes in U.S. at record pace

July 20, 2008March 18, 2008 by Infinite

Last May, a Saudi Arabian conglomerate bought a Massachusetts plastics maker. In November, a French company set up a new factory in Adrian, Michigan, adding 189 automotive jobs to an area accustomed to layoffs. In December, a British company bought a New Jersey maker of cough syrup.For much of the world, the United States is now on sale at discount prices. With credit tight, unemployment growing and worries mounting about a potential recession, American business and government leaders are courting foreign money to keep the economy growing.

Foreign investors are buying aggressively, taking advantage of American duress and a weak dollar to snap up what many see as bargains, while making inroads into the world’s largest market.

Last year, foreign investors poured a record $414 billion into securing stakes in U.S. companies, factories and other properties through private deals and purchases of publicly traded stock, according to Thomson Financial, a research firm.

Atlanta Fed Releases DVD Aimed at Helping Banks Prepare for Disasters

December 15, 2011March 6, 2008 by Infinite

Source: http://www.frbatlanta.org/invoke.cfm?objectid=5EDC3C78-5056-9F12-12899EC0FD1BFE7E&method=display_pressrelease

In the aftermath of a disaster, banks play a vital role, distributing cash to their customers and ensuring that their customers are able to meet the financial needs of their families and their businesses.

Drawing on the experience of bankers who have weathered crisis situations, the Federal Reserve Bank of Atlanta developed Crisis Preparedness: Reconnecting the Financial Lifeline, a DVD designed to assist bankers with their institutions’ emergency preparedness efforts. Each section of the DVD profiles a facet of crisis preparedness, from preparing and testing a plan to caring for employees to providing cash to customers to working with banks and first responders.