Word: bailouts
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
That was why, when the CEOs of the Detroit Three auto companies showed up on Capitol Hill in mid-November to beg for $25 billion in emergency loans, the committees they went to were Senate Banking and House Financial Services--which have jurisdiction over the financial-bailout...
...filed for Chapter 11. In one sense the process worked as designed--much of Lehman lives on under the names Barclays and Nomura. But the resulting run on the financial system sent Ben Bernanke and Hank Paulson scurrying in panic to Capitol Hill to ask for a $700 billion bailout...
There's a third option, between a no-strings bailout and Chapter 11--what some call conservatorship. It's bankruptcy-by-another-name, in which the government loans money to the automakers in return for equity stakes and concessions from creditors and workers. It's been done before--the 1979 Chrysler bailout followed such lines--but getting it right could be hard. "You're not very good at reworking companies," University of Maryland business professor Peter Morici told members of the Senate Banking Committee. "That's why we have bankruptcy courts...
...Dubai's boomtown housing values, with some analysts expecting up to a 20% decline in the next three years. The combined debt of Dubai's government and public-sector companies has escalated to the point where some analysts say the city-state Dubai might one day need a bailout from its super-rich sister emirate Abu Dhabi, which has more than 8% of the world's petroleum reserves...
...attractive to consumers in light of rising gas prices. In a more punitive vein, Congress could also consider requiring these companies to replace the management that has driven their companies into the current crisis. Making management accountable for its mistakes will likely discourage those who think that a congressional bailout provides a convenient out for failing companies. It may not be the government’s job to protect individual companies from failing, but in economic crises, it should work to lessen the effects of recession. Because of the central role the auto industry plays in the economy, Congress needs...