Freddie Mac, one of the companies that is most commonly blamed for the current sour economic condition of the United States, showed signs of improvement in the second quarter. While the company remains a long way from being able to repay the $51 billion in federal government bailout money it has received since September of 2008, Freddie Mac finally has some numbers to be moderately happy about.
Last year in the second quarter, Freddie Mac last more than a billion dollars. This year, they lost $374 million. However, that includes dividends payments to the federal government. Prior to those payments, Freddie …read more

Morgan Stanley, a global company in the financial and banking industries, said the company would be lowering the bonuses some executives were scheduled to receive. Base salaries would also be adjusted, according to Morgan Stanley in a filing with the SEC.
After AIG executives were roasted for receiving scheduled bonuses, this sounds like a good idea by Morgan Stanley. According to multiple accounts, Morgan Stanley received a lot of help by the United States federal government during the recent financial crisis. Like with AIG, people around the country could have been up in arms with Morgan Stanley if reports indicated that …read more

Not long ago, it seemed like every company that qualified was gladly accepting federal bailouts. On Tuesday, Allstate became the second insurance company to turn down federal bailout money. Last week, we reported that Ameriprise Financial was the first to say no.
“We applaud the Administration’s decision to include insurers in the U.S. Treasury’s programs, said Allstate CEO Thomas Wilson. “Given Allstate’s strong capital and liquidity positions, however, we will not participate in this program.”
According to Allstate, the company has more than $23 billion in highly liquid assets or cash. Additionally, Allstate says they have more than $12 billion in GAAP …read more

Sun Bancorp is the sixth bank to give back bailout money to the United States federal government. The bank, which is located in Vineland, New Jersey, sent approximately $90 million back to the government after receiving it in the second week of 2009.
Combined, the money the six banks have returned the feds so far reportedly totals around $450 million. However, that is just a small drop in the bucket compared to the price of the bailout. Approximately $200 billion was given to companies in the banking industry as part of the federal financial rescue plan.
Although the exact motives for why …read more

In an attempt to get the banking industry to start loaning money to businesses and individuals at a healthy rate, the White House reportedly wants to purchase the toxic assets that are haunting banks across the United States. It’s estimated that there is nearly $1 trillion in toxic assets within the nation’s banking industry.
Most economic experts believe that the road to recovery for the U.S. will begin when banks regain the confidence and the ability to start loaning money. Without a fluid financial world, both businesses and consumers will find it next to impossible to return to the prosperity of …read more