Archive for the ‘Losses’ tag
Are Freddie and Fannie Insolvent?
Financial news outlet CNBC was reporting early Thursday that
Freddie Mac and Fannie Mae, the two
corporations around which much of housing recovery has been structured,
may be technically insolvent.
The claim came from William Poole, former president
of the St. Louis Federal Reserve. Poole told Bloomberg News that Congress
should recognize that the two are technically insolvent
and the odds are that the U.S. may have to bail them out. Others
disagreed, saying that there would have to be sudden losses of $40
billion between the two to trigger insolvency.
Fed Must Protect the Markets from Relapse, Kohn Says
Testifying before the Senate Banking Committee on risk management and
systemic risk, Federal Reserve Vice-Chairman Donald Kohn
said that while liquidity pressures have eased, the Federal Reserve must
protect the markets from a possible relapse.
Kohn said that home loan losses are increasingly
significantly and that the commercial real estate market needs
to be supervised closely. Kohn added that…
U.S. Treasury Secretary Paulson Says Fundamentals of Economy Favourable
Despite five months of job losses and soaring oil prices, the
fundamentals of the U.S. economy remain favourable, said
U.S. Treasury Secretary Henry Paulson on Monday. However, he noted the
price of oil is a problem and that no policy initiatives are off the
table, including currency intervention.
Paulson was interviewed on CNBC as well as CNN on a variety of
issues.
He attributed the surge in oil prices to…