Sentences with phrase «toxic assets»
Toxic assets are financial investments that have become very risky and likely to lose their value or even become worthless. These assets can harm the economy and investors because they carry a high probability of causing financial losses. Full definition
The «toxic asset sale» simply replaces the bad assets with cash.
hussmanfunds.com
Cleaning up banking is the second, including action on toxic assets.
[64] The Independent described the entity sold as the «detoxified arm» of the bank, while saying the taxpayers retained «responsibility for # 20bn of toxic assets such as bad debts and closed mortgages.»
TARP, signed into law in 2008, allowed the U.S. Treasury to buy or insure up to $ 700 billion in toxic assets and equity, $ 250 billion of which flowed into banks.
That downward spiral came to an end — at least temporarily — when Treasury Secretary Henry Paulson opted to directly recapitalize banks (a move he had derided weeks earlier), rather than spending the entire $ 700 billion authorized by the Emergency Economic Stabilization Act to buy toxic assets from banks at above - market prices.
McKay takes a difficult topic — including CDOs, CDSs and other toxic assets — makes it eminently understandable to the layperson, and has a terrific amount of fun with it in the process (embracing, rather than ignoring, his roots in broad comedy).
Guns, he argues for instance, become like toxic assets that create a stigma that affects the company brand.
Plus, we can factor in that banks buying toxic assets and pushing bad loans helped his house value get cut in half, so maybe morally its good to see them receive some consequences of that?
On the Urgency of Restructuring Bank and Mortgage Debt, and of Abandoning Toxic Asset Purchases John P. Hussman, Ph.D..
Owners of these derivatives were suddenly bleeding money, and stuck with toxic assets no one would touch.
Wall St villains now saviours Wall Street fund managers - the very people blamed for the sub prime crisis that sparked the global economic meltdown - will be given an almost free ride to buy $ US1 trillion worth of toxic assets crippling the financial system.
What is worse is that all those Chinese have been saving their money and investing these last few years (those who could) and they invested in the same toxic assets that folded not long ago.
Even if the plan to remove toxic assets from bank balance sheets is successful (however «success» might be defined), the rate of foreclosure will be unaffected, because no change in the payment obligations of homeowners will result.
There is no «all or none» mechanism in the Treasury's toxic assets plan to accomplish this.
He was in favor of the UK toxic asset swap scheme — even though the pricing was ridiculous.
Thai turbine - terrorists, RATCH have also reacted with crazed panic; and have put everything up for grabs — clearly hoping to get out of a brewing financial collapse by way of the «greater fool theory ``, that vendors of toxic assets rely on when they're looking to ditch them in a hurry.
Why August is the Best Month for the Oceans Ocean Acidification Conference: Acidity Up 30 % Since Industrial Revolution - Producing Toxic Assets For The World
Unlike many of our other toxic assets, Hirst somehow avoided the downgrade of 2008.
In total, the TARP expenditures (between banks, other institutions and toxic asset purchases) were just over $ 600B.
It has been clear for some time that the funds available from the federal government's Troubled Asset Relief Program (TARP) were not going to be enough to shore up bank balance sheets laced with toxic assets.
Origin of Reverend Billy [edit] Reverend Billy attempting to exorcise bad loans and toxic assets from the Bank of America ATM in Union Square, New York City.
In this context, «Bound to Fail» carries with it the frisson of gambling, almost as if intending to apply a whiff of the danger - appeal of toxic assets, like bundled bad loans, to the artworks assembled here.
And it was on his watch as New York Fed president that the derivatives we now call «toxic assets» grew exponentially.
March 23: U.S. Treasury Secretary Timothy Geithner unveils plans to buy as much as US$ 2 trillion in unwanted mortgages and other «toxic assets» from banks.
Mr. Paulson added that the healthy parts of AIG had been «infected» by the «toxic assets.»
A portion of my bonus was invested in «toxic assets» consisting of international mortgage backed securities.
The 2008 financial crisis, on the other hand, was triggered in part by subprime mortgages — essentially, loans given to homeowners unlikely to be able to pay them back — and investment vehicles based on them in which these toxic assets were bundled and often hidden.
Others preferred to hold onto their toxic assets.
And those «toxic assets» everyone blames for the financial meltdown were AAA rated bonds.
Housing and credit markets were put on life support, with a market - based plan to buy U.S. banks» toxic assets.
3) Allow «toxic asset» purchases using public funds only to the extent that the entire issuance of various securitized mortgage pools can be purchased «all or none» at a moderate percentage of face value.
Remember that the «toxic assets» held by banks represent pools of mortgages that have been cut up into dozens of individual pieces; the higher grade pieces having first claim to payments made on the underlying mortgages, and the lower grade pieces having claims to less likely payments.
An equal concern is that there is no link between removing «toxic assets» from bank balance sheets and avoiding large - scale home foreclosures and loan defaults.
Indeed, the only way for the toxic asset sale to increase shareholder equity is if the buyer overpays for the asset.
By dramatically inflating the nominal prices of various «assets», including those that are now called «toxic assets», many of which were substantially created out of thin air, such as various derivatives, the banks, various financial institutions, and other holders of these assets, have essentially laid claims to a much larger proportion of the existing real wealth.
There is no such thing as a toxic asset, only a toxic price.
Because assets are bundled, it may take dangerously long to identify a toxic asset.
Our carbon - based infrastructure is like a toxic asset that threatens the portfolio of global goods, from public health to food security.»
Because it's now obvious that the reason we're experiencing a simultaneous meltdown in the financial system and the climate system is because we have been mispricing risk in both arenas — producing a huge excess of both toxic assets and toxic air that now threatens the stability of the whole planet.
He said the Obama administration's plan to snatch up soured loans and toxic assets could free up the credit markets and spur a recovery for the legal industry.
We look at an overview of the current financial crisis and the reasons for it — Toxic assets and why the banks lent so much to people with so little — The Role of The Bank of England and whether reduction in interest rates is working — The possibility of Deflation — Short selling of bank shares — The World shedding 70,000 + jobs a day — Madoff — How long the recession is likely to last.
Associates are starting to look like the equivalent of subprime mortgages for law firms — toxic assets they want moved off their books.