The Bush administration will invest about $125 billion in nine of the biggest U.S. banks, including Citigroup Inc. and Goldman Sachs Group Inc., in the government's latest attempt to shore up confidence in the financial system.
The proposed cash injections in exchange for preferred shares are part of a $700 billion rescue approved by Congress and follow similar moves by European leaders to unfreeze credit markets by helping beleaguered banks. The other companies are Wells Fargo & Co., JPMorgan Chase & Co., Bank of America Corp., Merrill Lynch & Co., Morgan Stanley, State Street Corp. and Bank of New York Mellon Corp., said people briefed on the plan.
“They've decided they need to do something drastic and this is drastic,'' said Gerard Cassidy, a bank analyst at RBC Capital Markets in Portland, Maine.
The purchases represent a new approach for Treasury Secretary Henry Paulson, who first promoted a bailout targeted at illiquid mortgage-related assets. The urgency for a more immediate infusion has grown as banks struggle to regain the confidence of investors, counterparties and clients after bad loans caused more than $635 billion of writedowns across the industry. Paulson will discuss his plan at a press conference at 8:30 a.m. today in Washington.
The prospect of government support sent stocks higher around the world. The Standard & Poor's 500 Index rebounded from its worst week in 75 years with an 11.6 percent advance. Asian stocks also surged, with the Nikkei 225 Stock Average jumping 13.4 percent, the most ever.
`Big Wallop'
“The government has gone to Plan B and it packs a big wallop,'' said Frederic Dickson, who helps oversee $25 billion as chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.
The Treasury plans to spend $25 billion each for stakes in Citigroup and JPMorgan, people said. Another $25 billion will be divided between Bank of America and Merrill, which agreed last month to be acquired by Bank of America. Wells Fargo is to get at least $20 billion, Goldman and Morgan Stanley will each get $10 billion, and State Street and Bank of New York will get about $3 billion each, people said.
The government will obtain its stakes with a type of security designed not to dilute the value of common shares.
None of the nine banks getting government money was given a choice about it, said people familiar with the plans. All of the banks involved will have to submit to compensation restrictions as mandated by Congress, people said.
`Healthy' Firms
Another $125 billion will be used to recapitalize other financial institutions around the country, the people said. Neel Kashkari, the U.S. Treasury official overseeing the rescue of the financial system, yesterday said the equity purchases will be aimed at “healthy'' firms best payday advance.
Under the plan to be announced today, the government will also guarantee for three years banks' newly issued senior unsecured debt, making it easier for them to refinance their liabilities, the people said.
Paulson, Federal Reserve Chairman Ben S. Bernanke and FDIC Chairman Sheila Bair scheduled a press conference at 8:30 a.m. today in Washington. The U.S. initiative follows an announcement that France, Germany, Spain, the Netherlands and Austria committed $1.8 trillion to guarantee bank loans and take stakes in lenders.
“Steps to restore confidence in our institutions and markets will go far toward resolving the current market stress,'' Bernanke wrote today in a column in the Wall Street Journal. “We will not stand down until we have achieved our goals of repairing and reforming our financial system, and thereby restoring prosperity to our economy.''
Bigger FDIC Role
Another part of the plan to be announced today would let the government expand FDIC coverage of non-interest bearing accounts, which are commonly business deposits.
Yesterday, Paulson summoned chief executive officers of the nine banks to the Treasury's headquarters in Washington to lay out the government's plans. The executives sat across the table with the heads of the Treasury, the Fed and other regulators.
After climbing for weeks, money-market rates in London yesterday fell after policy makers offered banks unlimited dollar funding and European governments pledged to take “all necessary steps'' to shore up confidence among lenders.
The London interbank offered rate, or Libor, for three- month dollar loans dropped 7 basis points to 4.75 percent, tied for the largest drop since March 17, the British Bankers' Association said.
Similar to Buffett
The government plan to buy preferred shares with warrants is similar to investments that Berkshire Hathaway Inc., the company run by billionaire Warren Buffett, made recently in Goldman and General Electric Co. Rather than buying common stock in the companies, which has declined in recent weeks, Buffett bought preferred stock paying a 10 percent dividend and received warrants that allow him to buy common stock at a pre-set price.
John Paulson, the founder of hedge fund Paulson & Co., wrote in a Sept. 26 editorial in the Wall Street Journal that the Treasury should adopt Buffett's approach rather than buying troubled assets.
Scott Talbott, chief lobbyist of the Financial Services Roundtable in Washington, which represents 100 of the biggest firms in the industry, said the group “is very supportive of using all these tools in varying degrees to help restore liquidity to the market.''
Washington Mutual Chief Executive Alan Fishman could walk away with more than $18 million in salary, bonuses and severance after less than three weeks on the job, according to the terms of his employment agreement.
But will Fishman follow the lead of another troubled financial firm and turn his severance package down?
JPMorgan Chase (JPM, Fortune 500) grabbed up the banking assets of WaMu on Thursday after federal regulators seized the company, making it the largest bank failure in history.
JPMorgan Chase CEO Jamie Dimon said in a conference call with reporters Friday that no decisions have been made about the fates of WaMu senior executives.
Still, the demise of WaMu is likely to be the end of Fishman’s brief tenure at the helm.
Fishman was hired on Sept. 7, replacing former long-time CEO Kerry Killinger, who was ousted as a result of the company’s many financial woes.
WaMu did not reply to requests for comment about Fishman’s severance package. But some details were outlined in his employment agreement, filed with the Securities and Exchange Commission on Sept. 11.
Fishman had a base annual salary of $1 million, which translates to $19,230 per week. So during his three weeks on the job, he would receive a base pay of about $60,000 before taxes.
His target annual bonus was 365% of his salary, or $3.65 million. In the agreement, it was unclear how much of the annual bonus he would be eligible for, if any.
The agreement said that Fishman could be eligible in 2009 for a long-term incentive award, which would be worth at least $8 million. But the agreement also said this is based on the assumption that would serve as CEO for the "full year" of 2009.
Also, if Fishman has to pay taxes because of any severance he receives as a result of the takeover, then the company would cover those taxes. That would potentially give Fishman millions of dollars more.
Fishman also got a multi-million dollar sign-on bonus. But he may have to pay it back, depending on certain conditions outlined in the agreement.
Fishman’s sign-on cash bonus was $7.5 million as well as 612,500 shares of WaMu, which are now virtually worthless. Shares of WaMu plunged more than 90% to 16 cents a share on Friday.
The agreement says that Fishman would have to pay back part or all of his bonus if he ends his employment for any reason other than "constructive termination," or if the company terminates his employment with "cause."
If Fishman is terminated without "cause" - which could mean the loss of a job due to a takeover of the firm - or if he resigns because of "constructive termination," than he would receive a lump severance payment of $6.15 million http://paydayloans-on.com guaranteed payday loans. This figure is 2.5 times his base salary of $1 million plus the maximum bonus of $3.65 million.
The agreement did not specify constructive termination, but it is generally characterized as an employee voluntarily quitting because of intolerable working conditions.
When you add up his salary, the possible bonuses and the lump sum payment, Fishman could walk away with more than $18 million.
But the CEO of another prominent financial firm in a similar situation recently decided to turn down his severance package after the firm essentially collapsed.
Robert Willumstad, former chief executive officer of insurance giant AIG (AIG, Fortune 500), which the government took an approximately 80% stake in after giving it an emergency $85 billion loan, was dismissed last week after only about three months on the job.
Willumstad has reportedly told his successor that he has decided not to accept his $22 million severance package since AIG shareholders and employees had lost so much money as a result of its meltdown.
Matt McCormick, portfolio manager with Bahl & Gaynor Investment Counsel, said he thinks that Fishman will not be rewarded extravagantly given that the bank failed.
"I will give WaMu the benefit of the doubt that they hired this person to make WaMu work, not to get foreclosed," he said.
But McCormick added that the WaMu failure wasn’t necessarily Fishman’s fault, because "their goose was cooked long ago."
In the future, employment agreements for CEOs might include more details on restricting multi-million dollar bailouts after brief tenures, McCormick said.
Freddie Mac sold $1 billion in five-year debt Tuesday at a price that indicates investors’ fears about the mortgage finance company’s future have eased a bit.
Investors are watching the debt sales of Freddie Mac and its sibling company, Fannie Mae, to gauge whether they are having problems funding their operations without government support.
The companies’ ability to sell debt last week diminished the sense of urgency about the two-companies’ future that seized Wall Street for much of last month.
Freddie Mac’s five-year debt sold through an auction Tuesday will pay a yield of nearly 3.98%, or almost 0.96 of a percentage point above comparable Treasury notes. That gap — or spread –was narrower than the company paid last month in a $3 billion offering of five-year notes, which was priced at 1.13% points above comparable Treasury securities.
Last month’s price reflected heightened concerns that the company and its larger government-sponsored sibling, Fannie Mae, would soon need a government rescue.
The McLean, Va.-based company also said it would sell a new $3 billion two-year debt security on Wednesday.
When companies issue debt, prices are often compared with those of similar-length Treasury bonds easy payday loan savings account payday advance. Treasury yields are a benchmark because they are considered the safest investments since they are backed by the government. The wider the spread between corporate debt and treasury yields, the riskier investors deem the corporate debt.
With this week’s auctions, Freddie Mac (FRE, Fortune 500) will have sold $43 billion in long-term debt this year in monthly auctions. The debt can be issued as two-, three-, five- and 10-year notes.
Shares of Freddie Mac rose 17 cents in afternoon trading to $4.68, while shares of Fannie Mae (FNM, Fortune 500) were unchanged at $6.84.
As a large Chinese corporate still in private hands, Huawei Technologies has a reputation of keeping information tightly under wraps.
Bidders for a Huawei unit are discovering just how tight that lid can be.
Huawei HWT.UL hired Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) in May to sell a majority stake in its mobile handset business, which saw its revenues double last year to more than $2 billion.
A deal could be worth more than $3.5 billion, say private equity and banking sources involved in the process.
At least four major private equity firms, including Bain Capital, are on a short list for the asset, with the hope of a sale coming before the end of the year http://pay-day-home.com guaranteed cash advance.
But the sources say the process is going slower than expected, with Huawei hesitant to give up key information the bidders and their bankers need to evaluate the business.
The process could collapse should Huawei continue to keep data close to its chest, the sources say, with bidders keen on crucial data given the size of the transaction.
“There is a lot more wood to chop on this deal,” said a banker involved with the deal who did not want to be identified.
Lehman Brothers, the once high-flying investment bank hit hard by the real estate crisis, is planning to lay off 1,500 workers, a source within the company confirmed Thursday.
The layoffs, which were first reported on the New York Times’ Web site, represent about 6% of Lehman’s workforce and are expected to take effect prior to the company’s third-quarter earnings report, due Sept. 15.
A Lehman spokesman declined comment.
News of the pink slips serves as a cruel reminder of what happens when a company’s main business lines collapse at the same time.
Lehman has been wracked by troubles resulting from its longtime effort to dominate the commercial and residential real estate markets in North America. Other business units, including its advisory work, have also slumped as the kinds of deals that are Wall Street’s bread and butter have come to a halt payday loans paydayloans.
Lehman’s (LEH, Fortune 500) stock is down almost 80% this year as its prospects continue to dim. Shares were up nearly 5% in trading Thursday.
The layoffs come amid unprecedented moves by Lehman to shore up its balance sheet. These efforts include the sale of up to $40 billion in commercial real estate loans and securities - which appear to be declining in value on weekly basis - as well as the sale of a stake in its highly profitable Neuberger Berman money management unit.
While both the sale of the mortgage investments and a Neuberger stake have been pursued for weeks, Lehman so far has been unable to reach a deal. The company has also been unable to secure a major equity investment.
The government says the federal budget deficit soared in July, pushed higher by economic stimulus payments and $15 billion in outlays to protect depositors at failed banks.
The Treasury Department reported Tuesday that the deficit for July totaled $102.8 billion, nearly triple the $36.4 billion deficit recorded in July 2007 payday loans instant cash advance.
The deficit beats the $97 billion gap that Wall Street economists had been expecting for July.
Malaysia's central bank, expected by economists to raise interest rates tomorrow, said it will assess the risks to economic growth as well as the outlook for inflation before making a decision.
The case for raising borrowing costs is “less clear'' in some countries than in others, Governor ZetiAkhtar Aziz said today in Kuala Lumpur. Bank Negara Malaysia has left the benchmark overnight policy rate at 3.5 percent since April 2006.
“There have been mixed assessments both in developed as well as developing countries,'' Zeti said. “For countries that had strong growth and overheating conditions, as well as high inflation, the solution was very clear for them to raise interest rates. We will consider all the factors and take a decision that is in Malaysia's best interests.''
Central banks in the region, including Indonesia and the Philippines, have boosted borrowing costs to battle inflation at the risk of curtailing growth as a U.S. slowdown hurts exports. Inflation in Malaysia accelerated to a 26-year high of 7.7 percent in June, and Credit Suisse Group AG said today rates may be raised tomorrow, earlier than it previously forecast cash advance in one hour payday advances.
Last month's 41 percent increase in gasoline prices has fanned inflation in Malaysia, where the government is attempting to cut fuel subsidies and trim the budget deficit.
So-called second-round inflation, where higher food and oil costs spread to other goods and services, as well as wages, may be “highly damaging,'' Zeti said.
“We are going to look at what are the risks to the inflation outlook, whether it is going to increase and continue to increase in an extended period of time, or whether there will be other mitigating factors,'' she said. “We will also look at what is the risk to moderation in our growth outlook.''
Higher borrowing costs in Malaysia may weigh on consumer spending, which the government is relying on to sustain economic growth as exports to the U.S. slow.
Zeti has said she expects economic growth to drop to about 5 percent this year from 6.3 percent in 2007.
The House of Representatives is set to vote today on a rescue plan for Fannie Mae and Freddie Mac after U.S. lawmakers reached a deal on legislation aimed at alleviating the worst housing recession in a quarter century.
“The package we have got is fully acceptable'' to the Treasury, Representative Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee, said late yesterday. Legislators crafted the agreement nine days after Treasury Secretary Henry Paulson asked for powers to inject capital into Fannie Mae and Freddie Mac.
The agreement increases the likelihood Paulson will get the authority this week, after he lobbied lawmakers to overcome concerns about taxpayer liability. The Treasury chief argued that the backstop for the beleaguered mortgage companies was critical to help safeguard U.S. financial market stability.
“It's important to get this legislation in place, and Congress and Paulson have done well to put together a workmanlike bill,'' said Peter Wallison, a former Treasury general counsel who is now a fellow at the American Enterprise Institute in Washington.
Lawmakers added the provisions to legislation that would create a stronger regulator for Fannie Mae and Freddie Mac and expand federal efforts to stem mortgage defaults. Frank introduced the bill to reduce foreclosures in April.
Bush administration officials are reviewing the 694-page bill. Frank told reporters in Washington the House will vote today, with the Senate expected to take it up tomorrow.
Debt Limit
Lawmakers, intent on limiting potential losses to taxpayers, tied the potential aid to Fannie Mae and Freddie Mac to the federal debt limit. Still, they also raised that ceiling to $10.6 trillion from the current $9.815 trillion.
Paulson, in an emergency move after Fannie Mae and Freddie Mac stock dropped to the lowest levels in more than 17 years, asked July 13 for power to make unlimited equity purchases in the firms. He also asked for “unspecified'' increases in their lines of credit, from $2.25 billion each. Both proposed measures would last until the end of next year.
Democratic lawmakers challenged the White House with yesterday's deal by including a measure it has repeatedly threatened to veto.
The provision would channel $3.9 billion to communities for the purchase of foreclosed properties. Officials have said it would aid lenders who now owned the vacated properties rather than struggling homeowners. House Democrats have predicted President George W. Bush wouldn't veto the bill.
`Play Politics'
“It's clear that the Democrats chose to play politics with the legislation,'' White House spokesman Tony Fratto said in an e-mail, without mentioning any veto plans.
Frank's counterpart in the Senate issued a statement indicating he backs the bill cash advance loan payday loan.
“We remain optimistic about the prospects for this legislation,'' Democratic Senator Christopher Dodd said in a joint statement with Republican Senator Richard Shelby.
Dodd, of Connecticut, chairs the Senate Banking Committee and Shelby, of Alabama, is the panel's top Republican. After the Senate, the bill would go to President Bush for signing into law.
Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac own or guarantee about half of the $12 trillion of U.S. home loans outstanding. The companies face mounting losses stemming from the collapse of the subprime market.
Drop in Stocks
Fannie Mae has dropped about 45 percent in the past month, and Freddie Mac has tumbled about 60 percent, on concern they have insufficient capital to cover writedowns and losses.
“This is about not only our housing markets, but it's about our capital markets more broadly,'' Paulson said in an interview with Bloomberg Television yesterday. “We must, in the short term, take steps to boost confidence'' in the firms.
In addition to a new regulator, the bill provides for the Federal Reserve to consult on Fannie Mae and Freddie Mac finances. Paulson said this week that the Fed has already begun participating in assessments of the companies.
The housing bill would create a program aimed to help an estimated 400,000 Americans with subprime home loans refinance into 30-year, fixed-rate mortgages backed by the government.
Fannie Mae and Freddie Mac would have a new, higher cap on the size of mortgages they may purchase. The new limit would be $625,000, or the median home price plus 15 percent, whichever is lower, Frank said.
Mortgage Bonds
States would be able to offer an additional $11 billion of mortgage-revenue bonds to refinance subprime loans.
Chances for the legislation's passage also got a boost yesterday when the Congressional Budget Office released a cost estimate for Paulson's plan that was lower than some had feared. While a range of outcomes was possible, the non-partisan group put a price tag of $25 billion on the proposals.
“It's pretty good news — a lot of people thought it would be much higher,'' Shelby said yesterday.
The CBO also warned of the consequences of Congress failing to approve the backstop.
“Failing to provide such authority at this point could trigger turmoil in the nation's financial and housing markets, with potentially serious adverse consequences,'' the CBO said, noting that markets are anticipating the measure's passage.
China's economy grew at the slowest pace since 2005 in the second quarter, prompting speculation the government will slow the yuan's gains to protect export jobs.
Gross domestic product rose 10.1 percent from a year earlier, down from 10.6 percent in the first quarter, as exports weakened and the government curbed lending. Consumer prices rose 7.1 percent in June, slowing from 7.7 percent in May, the statistics bureau said today in Beijing.
The yuan fell 0.2 percent against the dollar, paring a 7 percent advance this year that made it Asia's best performer. Some Chinese officials are pressing for slower currency appreciation to protect jobs as cooling global demand threatens to trigger a slump in shipments from the world's fastest-growing major economy.
“A slower pace of appreciation would mean breathing room for the export sector,'' said Jing Ulrich, JPMorgan's chairwoman of China equities.
The yuan closed at 6.8213 against the dollar in Shanghai.
GDP growth cooled for the fourth straight quarter. The median estimate of 18 economists surveyed by Bloomberg News was for a 10.3 percent expansion. The U.S. economy grew 2.5 percent in the first quarter.
China's growth is still the fastest of the world's 20 biggest economies and is helping to sustain the global expansion this year as a housing slump and credit-market turmoil threaten to send the U.S. into a recession.
`Orderly Slowdown'
“This is an orderly slowdown, not a dramatic one,'' said Kevin Lai, a Hong Kong-based economist with Daiwa Institute of Research.
The trade surplus for the second quarter narrowed 12 percent from a year earlier to $58.14 billion as import costs climbed and U.S. demand faltered.
Export prospects have deteriorated, with Federal Reserve Chairman Ben S. Bernanke saying this week that the U.S. faces “significant downside risks to the outlook for growth.''
Rising prices, constraints on agricultural output, lagging rural incomes and global financial market turmoil are problems for China's economy, the statistics bureau said in a statement.
The Ministry of Commerce has urged China's cabinet to rein in currency gains and raise some export rebates, a ministry official said July 14, speaking on condition of anonymity.
The yuan will gain only another 2.6 percent against the dollar by year end, according to the median estimate of 26 currency analysts surveyed by Bloomberg. It has risen 21 percent since the government scrapped a fixed exchange rate in July 2005.
`We'll Be Dead'
“We'll all be dead if the government doesn't increase tax rebates and slow the appreciation,'' Tang Zhenya, a salesman at Changshu Shengtian Knitting & Clothing Co. in Jiangsu province said yesterday.
Most textile companies were unprofitable in the first five months of the year, Du Yuzhou, President of China Chamber of Commerce for Import and Export of Textiles said at an industry conference in Shanghai.
As many as 45 million workers earn their livings in export- oriented sectors, according to Jonathan Anderson, a Hong Kong- based economist with UBS AG. He cites government surveys online payday loan faxless payday loans.
Inflation has eased from February's 12-year high of 8.7 percent on smaller gains in food prices. It remains above the central bank's 4.8 percent annual target and rising commodity costs may keep prices elevated.
Morgan Stanley today raised its inflation forecast for the year to 7 percent from 6.5 percent, citing the likelihood of energy-price increases.
Producer-Price Inflation
Producer prices climbed 8.8 percent in June from a year earlier, the statistics bureau said today, after rising 8.2 percent in May. That is the fastest pace since Bloomberg data began in 1999.
“The high producer-prices number points to the potential risk of inflation in the coming months,'' said Huang Yiping, chief Asia economist at Citigroup Inc. in Hong Kong. “Inflation is still way above the official target so a tight policy will continue.''
Besides using the currency to cool inflation, China has imposed lending quotas and ordered banks to set aside a record 17.5 percent of deposits as reserves to soak up cash flooding the economy from trade, foreign direct investment and investors betting on gains by the yuan.
The central bank hasn't raised interest rates this year to avoid attracting capital inflows. The China Banking Regulatory Commission has warned against higher bank reserve requirements because they've already damaged the industry's ability to repay debt, according to a person with knowledge of the matter.
Borrowing Costs
Standard Chartered Bank Plc today cut its forecast for four interest-rate increases this year to none and said the next change will be a reduction in 2009.
Goldman Sachs Group Inc. reduced its estimate for this year's economic expansion to 10.1 percent from 10.6 percent and said it no longer expected a rate increase. Lehman Brothers Holdings Inc. forecasts the yuan will rise to 6.7 against the dollar by year end.
Government efforts to boost consumption at home may be paying off. Retail sales rose 23 percent in June from a year earlier, the fastest pace since at least 1999. Urban disposable incomes rose 14.4 percent to 8065 yuan for the first half from a year earlier. Rural cash incomes climbed 19.8 percent to 2528 yuan.
“The surprising thing is the strength of the domestic economy,'' said Paul Cavey, an economist with Macquarie Securities Ltd. in Hong Kong. “Consumers still have a lot of cash and in that sense it's difficult to be too pessimistic about the domestic economy.''
Earthquake Reconstruction
Investment jumped amid rebuilding after the Sichuan earthquake in May. Urban fixed-asset investment surged 26.8 percent in the first half from a year earlier, the statistics bureau said, after climbing 25.6 percent in the first five months.
“They can keep the economy growing at 10 percent even if there is a sharp slowdown elsewhere in the world,'' said Julian Jessop, an economist with Capital Economics Ltd. in London, citing the government's ability to boost spending.
The FDIC stressed Sunday that the takeover of failed bank IndyMac is largely a "non-event" for most customers.
"Come Monday morning, it will be business as usual for all insured customers," said John Bovenzi, chief operating officer of the Federal Deposit Insurance Corporation, which insures U.S. banks.
When a bank shuts down, traditional accounts are insured to at least $100,000. Some accounts, such as annuities and mutual funds, are not insured at all. Individual Retirement Account (IRAs) funds are insured to $250,000.
If you had $100,000 at one bank and $100,000 at another, both would be insured, according to Allan Roth, a Colorado Springs, Colo. financial planner.
Individuals with multiple accounts in the same name at the same bank are limited to the $100,000 cap. If an individual has a $100,000 savings account in her name and a $100,000 joint account with her husband, both accounts would be covered.
"The difference is not in the number of accounts [that each individual has at an FDIC-insured bank]," said Roth. "The difference is in the titling [or name] on the account."
IndyMac Bancorp, once one of the nation’s largest home lenders, was taken over by federal regulators on Friday and transferred to the FDIC.
While IndyMac customers did not have access to online and phone banking services over the weekend, they could access funds by ATM, debit cards and checks.
"That fact is that for insured depositors, IndyMac’s conversion has been largely a non-event," said Sheila Bair, chairman of the FDIC in a statement.
IndyMac customers with uninsured deposits will get at least half that money back, and they could get more back, depending on what the FDIC gets when it sells the bank, said Bair.
Loan customers were advised to continue making loan payments as usual.
The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem list," up from 76 in the first quarter of 2008 paydayloans 500 fast cash. The total assets of "problem" institutions rose from $22.2 billion to $26.3 billion, the FDIC said. The FDIC does not publish a list of trouble banks out of concern it could spur a bank run
But for non-IndyMac customers, Bair stressed that their money is safe.
"IndyMac is only one of 8,494 depository institutions operating throughout the country," she said. "The overwhelming majority of banks in this country are safe and sound. The chance that your own bank will be taken over by the FDIC is extremely remote. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits."
Bovenzi added that all IndyMac branches will reopen Monday with full operations. "Customers should view this as a change in ownership," he said.
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