Liberalism: Do You Agree We've Had Enough of It? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Liberalism: Do You Agree We've Had Enough of It?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Kenneth E. Phillipps who wrote (58709)	2/5/2009 6:06:29 PM
From: lorne	1 Recommendation of 224750

‘No Prospect for a Profit’ on Fed’s Bear Assets: Chart of Day Email \| Print \| A A A By David Wilson bloomberg.com Feb. 4 (Bloomberg) -- U.S. taxpayers may be stuck with losses on $30 billion of Bear Stearns Cos. assets owned by the Federal Reserve even though the central bank has said otherwise, according to Robert A. Eisenbeis, Cumberland Associates Inc.’s chief monetary economist. “There is no prospect for a profit on the assets,” Eisenbeis wrote in a report yesterday. “Losses are mounting.” The CHART OF THE DAY illustrates the extent of the losses since June, when the Fed began providing data on the holdings’ value. The biggest declines were recorded after quarterly mark- to-market adjustments. Last week’s total was $4.22 billion, as shown in the chart. JPMorgan Chase & Co. is responsible for the first $1.15 billion under terms of an agreement completed in June, when the company took over Bear Stearns. The Fed picks up the rest. “The transaction was not structured with adequate over- collateralization to protect the taxpayers from losses,” based on the risks associated with housing-related assets at the time, Eisenbeis wrote. The central bank’s Board of Governors wrote in a Dec. 29 report to Congress that it didn’t expect “any net loss to the Federal Reserve or taxpayers” from the Bear Stearns holdings.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next