Big three put heads together, turn tables on Cerberus
Cerberus will lose stake in Chrysler as condition of Treasury‘s plan. (WSJ) Fate of Wagoner and auto industry decided by Rattner, Geithner, Summers in Roosevelt Room of White House. (WSJ)
What about Cerberus?
President Obama issued an ultimatum to GM and Chrysler today, setting out strict guidelines for the carmakers to meet before obtaining more government aid. Coupled with the forced resignation of
Wagoner circled
White House forces Wagoner to resign. (AP) Under investigation, Murtha protégé closes lobbying shop. (NYT) World’s largest private equity firm refuses to disclose returns to SEC. (Bloomberg) Barr, Garrett, Madison
Fly on the wall has explaining to do
US has had government-appointed attorney inside AIG board meetings and on-site since 2005. (WSJ) Cummings and 26 other members demand detailed information on why AIG made full payments to counterparties.
Officials see policy failures in drugs & finance
Geithner to outline regulatory overhaul today; hedge fund managers Paulson and Cooperman warn against excessive measures. (NYT) US drug war has been a failure, says Clinton in Mexico, blaming “insatiable
Social fabric stretched thin
Wall Street expresses anger at policymakers at Future of Finance conference; private equity manager says Washington is “stretching our social fabric.” (WSJ) Specter to oppose EFCA. (Washington Independent) Top hedge
Wall Street stages comeback
Administration is “operating on all cylinders” in reaching out to bankers like Wolf, Dimon, Gallogly. (WSJ) Market surges 500 points on news of Geithner plan. (NYT) Senate to table bonus
DeLong has a little brother in this fight
Since the Obama administration leaked details of its toxic asset plan on Friday night, the reaction in the blogosphere has been swift and harshly critical: the zombie plans have won,
Inflationary expectations
Treasury releases details of toxic asset purchase plan; government hopes generous loans to investors will encourage them to overpay for assets. (NYT) Romer says private investors who participate in toxic
Questions on AIG, Goldman, and Deutsche
I want to raise a few points on AIG that don’t seem to be coming up elsewhere, but that need critical attention if we are to understand how this disaster