Italy’s bank rescue is a risky Plan C

April 12, 2016

Rome has corralled banks into backing a 6 bln euro rescue fund. It’s something, but raises knotty governance issues without decisively plugging bad debt holes. Were they available, market solutions or creditor bail-ins would have been much better than stiffing the bank sector.

TARP success doesn’t make it good finance

April 25, 2012

The government’s $700 bln bailout plan stabilized the U.S. banking system and carmakers, but taxpayers won’t see any direct returns from the investment. Treasury’s fuzzy math wouldn’t fly with any sensible portfolio manager. What it calls a profit looks more like a $230 bln loss.

There’s no need to rush a GM IPO

By Rob Cox
June 22, 2010

General Motors boss Ed Whitacre has put the pedal to the metal on the automaker's initial public offering. Underwriters have been chosen and fees negotiated. To allow for a deal in the fourth quarter, a prospectus should come within weeks. But there's no rush.

TARP starts grooving like bad ’80s remix

June 17, 2010

TARP was in a groove but it's now turning into a bad '80s remix.

Europe’s banks will suffer less from U.S. tax

January 14, 2010

European banks should suffer less than their American counterparts from the Obama administration’s proposed bank tax.

GM readies its bailout defense

November 16, 2009

There's little downside to accelerating the repayment of the loans. The much feared implosion of the auto industry following the bankruptcies of GM and Chrysler failed to materialize, leaving GM in a better position than it had estimated. And repaying the loans earlier certainly helps GM. The interest rate on government debt is an expensive 7 percent a year, executives noted on a conference call.

GMAC shows it’s time to roll up TARP

November 2, 2009

The end result is a sort of crony capitalism where TARP money -- originally meant for buying toxic bank assets -- is propping up a politically sensitive sector of the economy while subjecting it to political control.

Herb Allison’s aim isn’t true

September 24, 2009

Herb Allison, the Treasury's man overseeing the $700 billion bailout fund, has provided another reason why it's rarely a good idea to put a former Wall Street executive in the position of making policy for banks.