Word: bailouts
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Huddled behind closed doors in Washington for the past two months, federal officials and bankers feverishly drafted a plan for the biggest bailout of a private company in U.S. history. The group of three dozen rescuers shuttled from one drab Government conference room to another, working 120-hr, weeks and pausing only occasionally to munch on fried chicken or hamburgers. Until the last minute, dozens of details were still undecided. But finally, William Isaac, chairman of the Federal Deposit In surance Corp., announced at a Washington press conference that the FDIC would put up $4.5 billion to rescue Chicago...
...huge bailout represented a painful step for the Reagan Administration, which is philosophically opposed to Government intervention to save failing firms. Treasury Secretary Donald Regan described the structure of the bailout as "bad public policy," because it puts a federal agency out on a limb to protect private investors. In a 4½-page memorandum to the heads of the three federal agencies that regulate the banks-Isaac, Comptroller of the Currency C.T. Conover and Federal Reserve Chairman Paul Volcker-Regan argued that the action was "implicitly extending a U.S. Government guarantee to all bank holding-company creditors...
...bailout is expected to boost mo rale inside the bank, which has lost a host of key employees by resignation. Observed Stuart Greenbaum, a finance professor at Northwestern University: "The loss of self-respect and pride among people at the bank has been enormous." Now that a comeback could be under way, he adds, many employees will want to stick around and try to redeem their reputations along with that of the bank's. Continental may soon rekindle its archrivalry with crosstown competitor First Chicago...
...that if there is a utility bankruptcy, Lilco will be the first. Lilco is awaiting approval of $200 million in bank loans, along with rate increases of another $200 million, but help from both quarters is uncertain. Governor Mario Cuomo has said he will not support a state bailout to prevent a Lilco bankruptcy, and regulatory authorities are ensnarled in what size rate hikes to grant...
...under Government guidance. Labor would make concessions in wage demands in return for job guarantees, business would promise to reinvest in new equipment in exchange for Government-backed loans, and so forth. It is an interesting idea, until one recalls the exhausting battles that invariably surround a single corporate bailout, such as that of Lockheed or Chrysler Corp. Moreover, an industrial recovery and reinvestment bill could easily become a hopeless pork barrel by the time lobbyists and horse-trading Congressmen finish with it. Such outcomes trouble many new-generation Democrats. "I am not sure Americans respond well to economic plans...