Unwinding Mess - IndyMac, Freddie Mac, and Fannie Mae

On Friday, the first unavoidable evidence that the credit crunch continues burst forth to center stage. The Office of Thrift Supervision (OTS) and the Federal Depositors Insurance Corporation (FDIC) were forced to take control of IndyMac Bancorp, Inc. IndyMac’s failure marks one of the largest bank failures in history, and is the largest bank failure [...]

Treasury Secretary Paulson - “Markets are Calmer Now”

Washington, D.C. (Associated Press): Treasury Secretary Henry Paulson said Friday that financial markets are “considerably calmer” now than they were two months ago. He predicted the economy will be rebounding by the second half of this year.
In a speech to business executives in Washington, Paulson said the drag from housing, which he characterized as still [...]

Federal Reserve Drops Fed Funds Rate to 2%

WASHINGTON (AP) - The Federal Reserve cut a key interest rate by a quarter-point, a smaller move than the aggressive easing it undertook earlier this year.
The Fed action, announced Wednesday after a two-day regular meeting, pushed the federal funds rate down to 2 percent, its lowest level since late 2004. It marked the seventh [...]

Lehman Brothers Denies “they’re next”… Wall Street Disagrees

Today, shares of Lehman fell dramatically on rumors that they might be “next” in losing liquidity among the Wall Street brokerage houses. The attached story ran today on the wires:
AP
Lehman Brothers Drops on Investor Fears
Monday March 17, 3:09 pm ET

Lehman Brothers Plunges; Analysts Doubt the Investment Bank Is Next Credit Crisis Victim NEW YORK (AP) [...]