All Blog Posts (1,487)

Cordinated rate cut.

Federal Reserve, European Central Bank, Bank of England, Bank of Canada, Swiss National Bank and Sweden's Riksbank join forces today in a historical, emergency, coordinated global rate cuts by 50bps ease save the world's economies from the worst crisis since the Great Depression. Fed, ECB, BoE, BoC and Riksbank will cut by 50bps. SNB cut by 25bps. PBoC of China also joins to cut by 27bps. BoJ didn't participate but said it supports the move.

The resulting interest rates… Continue

Added by Adam Horak on October 8, 2008 at 2:19pm — No Comments

JDfn Daily Digest - October 8, 2008

Treasury Secretary Henry Paulson said patience is needed because the ongoing financial market turmoil will not end quickly despite Congress approving a $700 billion bank rescue package. At the start of a press conference, Paulson said that the bailout plan and coordinated central bank interest rates could not end the crisis overnight. More banks are likely to fail in coming months and he stressed that Treasury now has the power to inject capital into banks, a step advocated by many… Continue

Added by Jack Lott on October 8, 2008 at 10:00am — No Comments

JDfn Daily Digest - October 6, 2008

In The News

The Federal Reserve says it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks, fresh steps to help ease a painful credit crisis. Congress in the $700 billion bailout bill President Bush signed on Friday gave the Fed the power to pay interest on those reserves for the first time. The law accelerated the effective date to Oct. 1st of this year versus 2011.

Bank of America Corp. (BAC) and a number of U.S.… Continue

Added by Jack Lott on October 6, 2008 at 10:55am — No Comments

NON Farm Sept 08

THE EMPLOYMENT SITUATION: SEPTEMBER 2008

Nonfarm payroll employment declined by 159,000 in September, and

the unemployment rate held at 6.1 percent, the Bureau of Labor Sta-

tistics of the U.S. Department of Labor reported today. Employment

continued to fall in construction, manufacturing, and retail trade,

while mining and health care

continued to add jobs.

Unemployment (Household Survey Data)

The unemployment rate (6.1 percent) was… Continue

Added by Adam Horak on October 3, 2008 at 10:56am — No Comments

JDfn Daily Digest - October 3, 2008

The House of Representatives voted to approve a revised $700 billion bailout plan for the financial markets. The House's vote follows the Senate's approval and clears the way for President Bush's signature. Passage came over the objections of some members who balked at tax provisions in the bill and giving the Treasury secretary extraordinary power to buy bad assets. The bill now goes to the President for signature.

Employers made deeper cuts in their payrolls in September as the… Continue

Added by Jack Lott on October 3, 2008 at 10:00am — No Comments

JDfn Daily Digest - October 2, 2008

House members are getting another chance to vote on a financial rescue bill that has infuriated millions of voters after the Senate added tax cuts and other sweeteners and passed it handily. Senators passed the much-criticized measure in a 74-25 vote, sending it to the other side of the Capitol for a showdown vote expected tomorrow.

The SEC has extended an unprecedented ban against all short-selling in the shares of more than 800 financial companies, keeping it in place at least… Continue

Added by Jack Lott on October 2, 2008 at 10:39am — No Comments

JDfn Daily Digest - October, 1, 2008

House leaders believe progress is being made toward getting the $700 billion financial industry rescue bill through Congress, thanks partly to a provision increasing insurance for people's deposits. The plan was set for a Senate vote tonight after leaders agreed to add tax breaks for businesses and the middle class and increase deposit insurance in an attempt to revive the legislation rejected by the House. The vote is slated to take place at 7:30 p.m. (Eastern Time). Senators John McCain,… Continue

Added by Jack Lott on October 1, 2008 at 10:30am — No Comments

Oct ADP Report

Wednesday, October 1, 2008, 8:15 A.M. ET

Nonfarm private employment decreased 8,000 from August to September 2008 on a seasonally

adjusted basis, according to the ADP National Employment Report®. The estimated change in

employment from July to August was revised down from a decrease of 33,000 to a decrease of

37,000.

September’s ADP National Employment Report continues to offer evidence of a weak labor

market. Note that this month, the ADP Report does not reflect… Continue

Added by Adam Horak on October 1, 2008 at 8:43am — No Comments

JDfn Daily Digest - September 30, 2008

The U.S. Senate will try to salvage a $700 billion financial-rescue package after the measure was defeated in the House of Representatives. The lawmakers won't have a lot of room to negotiate. The Senate won't hold any roll-call votes today because several lawmakers will be celebrating Rosh Hashanah, the Jewish New Year. Senators say they have no choice but to revive the measure, which is designed to restore confidence in the nation's banking system.

President Bush said the economic… Continue

Added by Jack Lott on September 30, 2008 at 10:30am — No Comments

JDfn Daily Digest - September 29, 2008

The House defeated a $700 billion emergency rescue for the nation's financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nose dive into recession without it.

Several Republican aides said House Speaker Nancy Pelosi, torpedoed any spirit of bipartisanship that surrounded the bill with a scathing speech near the close of the debate that blamed Bush's policies for the economic turmoil.

Citigroup (C)… Continue

Added by Jack Lott on September 29, 2008 at 9:30am — No Comments

JDfn Daily Digest - September 26, 2008

President Bush tried to reassure the markets that Congress, despite a breakdown in negotiations, would pass a $700 billion financial rescue plan. President Bush wants Congress to complete a bipartisan agreement on a mortgage rescue plan before Wall Street opens on Monday.

The Commerce Department said Gross Domestic Product, the measure of total goods and services output within U.S. borders, expanded at a 2.8 percent rate in the April-June second quarter rather than the 3.3 percent… Continue

Added by Jack Lott on September 26, 2008 at 10:30am — No Comments

JDfn Daily Digest - September 25, 2008

Senior lawmakers and Bush administration officials have cleared away key obstacles to a deal on the unprecedented $700 billion financial rescue plan, agreeing to include widely supported limits on pay packages for executives whose companies benefit. A bipartisan meeting is set to begin drafting a compromise, which top Democrats said they hoped could pass within days.

Federal Reserve Chairman Bernanke moved closer to cutting interest rates, signaling that risks to U.S. growth are… Continue

Added by Jack Lott on September 25, 2008 at 10:30am — No Comments

Sept 20 unemployment weekly claims

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

SEASONALLY ADJUSTED DATA

In the week ending Sept. 20, the advance figure for seasonally adjusted initial claims was 493,000, an increase of 32,000 from the previous week's revised figure of 461,000. It is estimated that the effects of Hurricane Gustav in Louisiana and the effects of Hurricane Ike in Texas added approximately 50,000 claims to the total. The 4-week moving average was 462,500, an increase of 16,000 from the previous… Continue

Added by Adam Horak on September 25, 2008 at 9:52am — No Comments

JDfn Daily Digest - September 24, 2008

The National Association of Realtors reported that resales of U.S. single-family homes and condos fell 2.2% in August to a seasonally adjusted annual rate of 4.91 million. Economists expected sales to hit 4.93 million. Resales have fallen 10.7% in the past year. The inventory of unsold homes on the market fell 7% to 4.26 million, a 10.4 month supply at the current sales pace.

Federal Reserve Chairman Bernanke said the U.S. is facing ``grave threats'' to financial stability and warned… Continue

Added by Jack Lott on September 24, 2008 at 11:04am — No Comments

JDfn Daily Digest - September 23, 2008

President Bush has reassured foreign leaders that the plan to rescue U.S. financial institutions will pass Congress. Speaking to reporters in New York, where he is attending meetings of the United Nations, Bush said the debate in Congress on the package is part of the normal give-and-take. He said, "I am confident....that there will be a bipartisan bill.”

Federal Reserve Chairman Ben Bernanke said that Congress must act swiftly to approve Treasury Secretary Henry Paulson's plan to… Continue

Added by Jack Lott on September 23, 2008 at 10:44am — No Comments

JDfn Daily Digest - September 22, 2008

The Bush administration insisted that Congress must move quickly to approve what one lawmaker called the "mother of all bailouts" -- a $700 billion proposal to buy a mountain of bad mortgage debt in an effort to unfreeze the nation's credit markets.

The G7 group of finance ministers and central bank governors of the wealthiest industrial countries held a teleconference and agreed to take "whatever actions may be necessary" to ensure the stability of the international financial… Continue

Added by Jack Lott on September 22, 2008 at 10:12am — No Comments

JDfn Daily Digest - September 19, 2008

President Bush said a broad-ranging U.S. plan to fight the crisis will get the financial system moving again. But in a statement from the White House, he said that plan will put "significant" amounts of taxpayer dollars on the line. The President said Democrats and Republicans must come together to approve the plan.

The Federal Reserve took two steps to boost market liquidity. The Fed will extend loans to banks to finance their purchases of asset-backed commercial paper from money… Continue

Added by Jack Lott on September 19, 2008 at 11:00am — No Comments

JDfn Daily Digest - September 18, 2008

The world's major central banks banded together to inject as much as $180 billion into money markets in a bid to stave off the growing global financial crisis. The Federal Reserve joined with the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank to pump more short-term dollar liquidity into the financial system.

The Federal Reserve added another $50 billion in overnight loans to help liquefy money markets, matching the amount offered twice… Continue

Added by Jack Lott on September 18, 2008 at 10:47am — No Comments

JDfn Daily Digest - September 17, 2008

The government has stepped in to rescue American International Group Inc. (AIG) with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in one of the world's largest insurers and the right to remove senior management.

Barclays PLC (BCS), the third-largest British bank, took advantage of Lehman Brothers Holdings Inc.'s (LEH) bankruptcy reorganization to reach a deal for Lehman's North American investment banking and trading… Continue

Added by Jack Lott on September 17, 2008 at 11:25am — No Comments

FOMC

For immediate release

The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.

Strains in financial markets have increased significantly and labor markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few… Continue

Added by Adam Horak on September 16, 2008 at 2:30pm — No Comments