[PDF] The Emergency Economic Stabilization Act And Recent Financial Turmoil eBook

Author : Baird Webel
Publisher : DIANE Publishing
Page : 32 pages
File Size : 28,56 MB
Release : 2011
Category : Business & Economics
ISBN : 1437939694

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This is a print on demand edition of a hard to find publication. Contents: (1) Intro.; (2) Troubled Assets Relief Program (TARP): Provisions of TARP: Asset Purchase; Asset Insur.; Program Size; Private Equity and Debt Considerations; Oversight Provisions; Assistance to Homeowners; Exec. Compensation; Mark-to-Market Accounting; Increase in Deposit Insur.; Treasury Actions Since Enactment; Asset Purchase and Insur.; Preferred Share Purchase; Homeowners¿ Assistance; Auto Mfrs.; Consumer Asset-Backed Securities; (3) Potential Causes of Financial Instability; (4) Sources of Current Market Turmoil; Mortgage Defaults, and Asset Prices; Liquidity and Uncertainty; Capital Adequacy and Leverage; (5) Evidence of the Real Effects of Financial Market Turmoil; Tightening Credit Markets. Illus.

Author :
Publisher :
Page : 0 pages
File Size : 39,62 MB
Release : 2008
Category :
ISBN :

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In addition to the mortgage-related assets that were the focus of the program, the Secretary is authorized to purchase "any other financial instrument" that is "necessary to promote financial market stability.". [...] The Secretary is to take steps to prevent "unjust enrichment" of financial institutions selling assets to the government, in particular preventing the sale of troubled assets at a price higher than what the seller initially paid for the asset. [...] Under the statute, the guarantees may be up to 100% of the value of the asset and the premiums may be risk-based, but the Secretary is not required to implement either of these provisions. [...] The taxpayer is required to reduce the basis in the principal residence by the amount of the excluded income. [...] The smaller the amount of reserves the intermediary keeps on hand, the greater the potential for profit, but the greater the risk that the firm will be caught without adequate funds if conditions change.

Author : Nikola Vazquez
Publisher :
Page : 0 pages
File Size : 29,60 MB
Release : 2010
Category : Banking law
ISBN : 9781607413271

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Many observers trace the root cause of recent instability in financial markets to uncertainty surrounding the value of widely held securities that are based on mortgages and mortgage-related assets. Losses on these securities have led to the unexpected and relatively sudden failure of several large financial institutions. Credit markets have nearly frozen at times as financial institutions demanded very high interest rates on traditionally routine short-term lending. While there is limited evidence that financial turmoil has caused widespread damage in the broader economy, it is feared that significant real economic effects may be forthcoming, particularly if credit markets remain frozen. This book highlights The Emergency Economic Stabilization Act (EESA), established as law on October 3rd 2008, in response to these economic fears. The Act The Troubled Assets Relief Program (TARP), created by this Act, is also analysed. Furthermore, the insurance program contained in the enacted version of the EESA is briefly summarised and analysed. This is an edited, excerpted and augmented edition of various government publications.

Author : Martin Y. Perkins
Publisher :
Page : 0 pages
File Size : 28,54 MB
Release : 2010
Category : Economic stabilization
ISBN : 9781607413592

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The current financial instability became widely apparent in the credit markets in August 2007. Although initially thought to be limited to sub-prime mortgages, increasing defaults on prime mortgages caused losses that rippled through the financial system. The effects have been particularly severe because U.S. mortgage-backed securities (MBS) had previously been viewed as low risk investments. Beginning in early 2008, multiple failures in large financial institutions prompted case-by-case government interventions to address these failures. Dissatisfaction with these ad hoc responses was cited by the Treasury in proposing a broader response focusing on government purchase of trouble mortgage-related assets, hoping to stem uncertainty and fear by removing these assets from the financial system. In early October 2008, Congress passed, and the President signed, the Emergency Economic Stabilization Act of 2008, creating the Troubled Assets Relief Program (TARP). This book briefly introduces aspects of the current financial instability. Following this, it outlines the Emergency Economic Stabilization Act (EESA) legislation and the steps that Treasury has taken to implement EESA. Also examined with a more in-depth analysis of the current financial instability are the potential causes of the financial instability, some sources of the current instability, and how financial instability may spill over into the broader economy.