In a letter to shareholders, JPMorgan Chases CEO Jamie Dimon stated that the issue of "Too Big to Fail" has been solved. In an interview with Adam Shapiro on Fox Business, Minneapolis Federal Reserve President Neel Kashkari disagreed with this Dimon's statement. In addition, Neel Kashkari took issue with Dimon’s statement in his letter that banks are excessively capitalized, and that the capital standards should be lowered.
Read More »Delving into Fannie Mae, Freddie Mac Earnings
The financial results for Q1 2016 released by both Freddie Mac and Fannie Mae this week, particularly for Freddie Mac, have resulted in even more questions as to whether or not the current GSE model is sustainable.
Read More »Freddie Mac Dodges A Bailout Bullet
The good news from Freddie Mac’s Q1 2016 Financial Results: Freddie Mac will not need a draw on Treasury for the time being. Now the bad news: Freddie Mac reported a multi-million dollar net loss for the first quarter.
Read More »The Week Ahead: Will the GSEs Need a Bailout This Week?
Fannie Mae and Freddie Mac are set to release its first quarter earnings statement this week, and after rough weeks of earnings so far, many in the industry are fearing the worst concerning the profitability of GSE. Is yet another taxpayer-funded bailout upon us?
Read More »Fannie Mae & Freddie Mac’s Q3 Financial Results Stir Bailout Questions
Fannie Mae and Freddie Mac's 2015 third quarter earnings statements have the housing industry buzzing about taxpayers paying the ultimate cost of funding yet another bailout for the GSEs.
Read More »Fed Proposes New ‘Too Big to Fail’ Bailout Rule
The Federal Reserve recently proposed a new rule that will remove some of the pressure from the government and taxpayers concerning eight of the nation’s largest banking institutions.
Read More »Transcripts Show Ben Bernake was ‘Uncomfortable’ With Bank of America Bailout
In January 2009, Bank of America received its second bailout of $20 million from the Fed to help stabilize the company after its purchase of Merrill Lynch. At the time, Merrill Lynch had lost more than $15 billion in the previous quarter and Bank of America had lost $2.4 billion.
Read More »FHA’s Insurance Fund Back in Black
Following an independent review of its finances, FHA reported to Congress Monday that its Mutual Mortgage Insurance (MMI) Fund is valued at $4.8 billion for the fiscal year 2014, a step up from last year's shortfall of $1.3 billion.
Read More »Fannie, Freddie to Pay $5.6B on Second-Quarter Profits
The U.S. government is set to see another $5.6 billion from Fannie Mae and Freddie Mac as both GSEs continue to post solid earnings. Both companies released on Thursday their earnings reports for the second quarter, reporting subdued profits compared to recent quarters as settlement earnings and other previous one-time benefits subside.
Read More »