History 1803E Lecture Notes - Government National Mortgage Association, Troubled Asset Relief Program, Henry Paulson
14 Nov 2012
School
Department
Course
Professor
Document Summary
Henry paulson, secretary of the treasury, former ceo of goldman sachs. Bear stearns collapses in march, 2008 and is bought by jp morgan at fire- sale price (orchestrated by paulson) September, 2008, merrill lynch is forced to sell its self to bank of america. Lehman brothers files for bankruptcy september 15, 2008. ( billion) September, 2008 aig is given a billion bailout by government (state. Bush is losing interest with presidency and hands off all responsibilities for recession to paulson. He seems to be making it up as he goes along. He creates a deal for bear stearns but not lehman. Paulson creates a comprehensive bailout package for wall street. October, 2008 emergency economic stabilization act (the bailout) Troubled asset relief program (tarp)-government program to buy toxic/bad assets (bonds, securities) that wall street has on its books. Frees up capital, takes weight of toxic assets of their shoulders. Wall street banks who messed up no the public.
