Under the Emergency Economic Stabilization Act of 2008, more commonly known as the $700 bailout, the government promised to loan money to the nation’s banks to prevent Wall Street from completely crashing. The funds would be released in two $350 phases.
So far $161.5 billion has been given to banks. Another $108.5 billion has been applied for.
Who’s Got the Money?
So far, we know that AIG has been given some of the bailout money. Other banks include:
· Citigroup - $45 billion
· AIG - $40 billion
· JPMorgan Chase - $25 billion
· Wells Fargo - $25 billion
· Bank of America - $15 billion
· Goldman Sachs - $10 billion
· Merrill Lynch - $10 billion
· Morgan Stanley - $10 billion
· U.S. Bancorp - $6.6 billion
· Capital One - $3.5 billion
· Regions Financial - $3.5 billion
· SunTrust - $3.5 billion
Several smaller, more local banks have also received money. See a complete list of bailed-out banks at the New York Times.
Will consumers get a bailout?
The Federal Reserve announced a program that would assist banks in meeting consumer and small business needs. The Term Asset-Backed Securities Loan Facility would help banks issue consumer and small business loans including student loans, auto loans, credit card loans, and SBA loans. The Federal Reserve Bank of New York plans to lend $200 billion to this effort. Another $20 billion will come from the $700 billion bailout.
Showing posts with label credit crisis. Show all posts
Showing posts with label credit crisis. Show all posts
Friday, December 5, 2008
How to Get Through the Recession
Though the government avoided saying the “r” word for months, it’s been officially announced that the United States has been in a recession since December 2007.
Your job could be at risk. Cutting jobs are one of the ways companies keep down their operating costs. The country has already reached its highest level of unemployment since 1996 and more companies announce massive layoffs. You never know if your job is next so it’s a good idea so have an emergency fund of three to six months of living expenses to hold you until your next job.
It could be hard finding a job after a layoff. The overall number of jobs has decreased and that makes it hard to find a job once you’re unemployed. Use your emergency fund wisely and take advantage of your state’s unemployment insurance.
Update your resume now. If you get laid off, you’ll be able to start looking for a new job immediately. Take advantage of any skills training your current job offers. The more skills you have the more attractive you will be to future employers.
Keep your credit card debt under control. Though you may be tempted to rely on credit cards or loans to help you get through the recession, it’s better to keep your debt level low. That way, in the unfortunate event of a job loss, your debt bills will be lower.
Lock in your mortgage interest rate. Part of the recession was caused by increased mortgage payments on adjustable rate mortgages. As mortgage payments increased, consumers had less money to spend on consumable goods. Work with your lender to modify your loan with a fixed interest rate. Or, try to refinance your mortgage into a fixed-rate mortgage. Though your payments might be higher than they are currently, you never have to worry about them increasing.
Your job could be at risk. Cutting jobs are one of the ways companies keep down their operating costs. The country has already reached its highest level of unemployment since 1996 and more companies announce massive layoffs. You never know if your job is next so it’s a good idea so have an emergency fund of three to six months of living expenses to hold you until your next job.
It could be hard finding a job after a layoff. The overall number of jobs has decreased and that makes it hard to find a job once you’re unemployed. Use your emergency fund wisely and take advantage of your state’s unemployment insurance.
Update your resume now. If you get laid off, you’ll be able to start looking for a new job immediately. Take advantage of any skills training your current job offers. The more skills you have the more attractive you will be to future employers.
Keep your credit card debt under control. Though you may be tempted to rely on credit cards or loans to help you get through the recession, it’s better to keep your debt level low. That way, in the unfortunate event of a job loss, your debt bills will be lower.
Lock in your mortgage interest rate. Part of the recession was caused by increased mortgage payments on adjustable rate mortgages. As mortgage payments increased, consumers had less money to spend on consumable goods. Work with your lender to modify your loan with a fixed interest rate. Or, try to refinance your mortgage into a fixed-rate mortgage. Though your payments might be higher than they are currently, you never have to worry about them increasing.
Monday, November 24, 2008
Credit Crisis Could Bring Credit Repair Scams
The credit crisis has brought with it an increased number of companies claiming they can repair your credit. To someone stuck in a bad credit situation, these promises sound tempting, but when it comes to credit repair companies, things are never as they seem.
Credit repair organizations can’t work the magic they’d have you believe they can. Legally, they cannot do anything to help your credit that you can’t do yourself. The same credit laws prevent you from removing accurately reported information from your credit report hold true for credit repair companies. For example, if you really did file bankruptcy 3 years ago, that bankruptcy has to remain on your report for at least 4 more years, 7 years in some cases. If you didn’t file bankruptcy, then you can submit your own credit report dispute to have the entry removed for absolutely free.
Considering the Federal Trade Commission says they’ve never seen a legitimate credit repair company, it’s safe to assume all credit repair companies are a waste of time.
Credit repair companies have to follow the federal law called the Credit Repair Organizations Act. You should avoid any company that’s not following that law.
Any credit repair company you deal with has to give you a pamphlet titled “Consumer Credit File Rights Under State and Federal Law.” They’re also required to give you a copy of your contract before you’re asked to sign it. This contract has to spell out how much you have to pay, what services will be done, the date or time period for doing the services, and a statement letting you know you can cancel the contract within 3 days of signing. The company’s name and business address should be on the contract.
You don’t have to pay for any services before they’ve been done for you. If a credit repair company asks you to, look for another one.
No credit repair company should promise to remove accurate information from your credit report. Nor should they suggest you create a new identity.
A sure sign of a scam is an agency that asks you to sign away your rights under the Credit Repair Organizations Act. Credit repair companies aren’t allowed to ask you to do this and even if you do, the waiver isn’t legally binding.
If you’ve dealt with an unscrupulous credit repair agency, you can report the Federal Trade Commission (www.ftc.gov) and your state’s Attorney General.
Credit repair organizations can’t work the magic they’d have you believe they can. Legally, they cannot do anything to help your credit that you can’t do yourself. The same credit laws prevent you from removing accurately reported information from your credit report hold true for credit repair companies. For example, if you really did file bankruptcy 3 years ago, that bankruptcy has to remain on your report for at least 4 more years, 7 years in some cases. If you didn’t file bankruptcy, then you can submit your own credit report dispute to have the entry removed for absolutely free.
Considering the Federal Trade Commission says they’ve never seen a legitimate credit repair company, it’s safe to assume all credit repair companies are a waste of time.
Credit repair companies have to follow the federal law called the Credit Repair Organizations Act. You should avoid any company that’s not following that law.
Any credit repair company you deal with has to give you a pamphlet titled “Consumer Credit File Rights Under State and Federal Law.” They’re also required to give you a copy of your contract before you’re asked to sign it. This contract has to spell out how much you have to pay, what services will be done, the date or time period for doing the services, and a statement letting you know you can cancel the contract within 3 days of signing. The company’s name and business address should be on the contract.
You don’t have to pay for any services before they’ve been done for you. If a credit repair company asks you to, look for another one.
No credit repair company should promise to remove accurate information from your credit report. Nor should they suggest you create a new identity.
A sure sign of a scam is an agency that asks you to sign away your rights under the Credit Repair Organizations Act. Credit repair companies aren’t allowed to ask you to do this and even if you do, the waiver isn’t legally binding.
If you’ve dealt with an unscrupulous credit repair agency, you can report the Federal Trade Commission (www.ftc.gov) and your state’s Attorney General.
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