Finance Globe

The revised Emergency Economic Stabilization Act (EESA) of 2008 was approved by both houses of Congress and President Bush signed the bill into law on October 3, 2008.A summary of the original version of EESA 2008:Provides the Treasury with $700 billion to buy bad mortgage-related investments from banks. This move will gradually make credit more available for businesses and working families, and help unfreeze the economy. Also, it is hoped to stabilize the markets and help...

The U.S. House of Representatives approved legislation last week that is meant to protect consumers from many of the tricky practices commonly used by credit card issuers. The Credit Card Holder's Bill of Rights, HR 5244, was approved by a vote of 312-112.“This legislation will level the playing field by putting an end to unfair and abusive credit card practices that outrage so many American families,” said Michigan Rep. Sandy Levin. “Americans are struggling to make...

The latest version of the $700 billion bailout plan has been rejected by the U.S. House of Representatives, voting against the package 228-205. Earlier this morning before the vote, President Bush expressed confidence that the Emergency Economic Stabilization Act of 2008 would be passed by both houses. Stock markets around the world took a dive in response to the news. The rejected legislation addressed the following:Giving the Treasury $250 billion, initially, to buy bad mortgages from...

Morgan Stanley and Goldman Sachs, the nation's last two major investment banks which each own about $1 trillion in assets, were granted approval by the Fed to let them switch to bank holding status. The banks both have previously operated as industrial loan banks, meaning they did not have to adhere to the strict regulation that applies to a commercial bank. The banks' change will be official after the mandatory five-day waiting period.The change means that...

President Bush said that his Administration and members of Congress have been working hard over the weekend to find a solution to controlling the damage to the nation's financial markets caused by the sub-prime mortgage collapse. He says that they've made good headway on a bill addressing the ensuing financial crisis, but that they have some differences to work out."Americans are watching to see if Democrats and Republicans, the Congress and the White House, can come...

The FTC Fights Prepaid Calling Card ScamThe Federal Trade Commission, the nation's consumer protection agency, is going after shady prepaid calling card companies who misrepresent the value of their product to consumers. The FTC "works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them."“In the fall of 2007, the FTC established a joint federal-state task force concerning deceptive marketing practices in the prepaid calling...

The Federal Reserve Board announced on Thursday a plan to inject $180 billion into the global economy in an effort to ease the pain of the credit crisis and calm the fears of nervous investors. The Fed is working in a united effort with five central banks: the Swiss National Bank, the European Central Bank, the Bank of Canada, the Bank of Japan, and the Bank of England.The central banks said in a statement, "These measures,...

President Bush made a brief statement on September 18th stating that he shared the concerns of the American people regarding the financial markets and the state of the economy. The President has cancelled today's GOP-fundraising travel plans in order to stay in Washington to meet with economic advisors and to keep an eye on the situation in the financial markets. He briefly talked with Treasury Secretary Henry Paulson this morning and plans to meet again later...

Rescuing private companies with taxpayer money; here we go again. The Federal Reserve announced on Tuesday to give an $85 billion emergency loan to the New York-based insurance company, American International Group, also known as AIG.The U.S. government gets a 79.9% stake in the company in exchange for the two-year loan, as well as the right to veto dividends on common and preferred stock in the company.AIG has 116,000 employees in 130 countries around the world,...

Two more pillars of Wall Street fell over the weekend, shaking any last bit of investors' confidence in the integrity of the global financial system. Stock markets around the world tumbled in response to the failures of the massive companies. And, another pillar is in deep trouble.Lehman Bothers goes bankrupt.Lehman Brothers, the nation's fourth largest investment bank, announced on Monday that it will file for Chapter 11 bankruptcy. The decision for the 158 year-old bank to...