Bailouts, Bank Bailout | featured news

The Treasury Department said Monday it will begin selling the stake it owns in Citigroup Inc., which could result in a profit to the government of about $7.5 billion. Government received 7.7B shares in exchange for $25B it gave the banking firm during credit crisis.

House lawmakers hold their first hearing about how to restructure the mortgage system.

President Obama’s proposal for a direct tax on banks to pay for future bailouts is gaining momentum in Europe.

An overwhelming majority of Americans wants Wall Street subjected to tougher regulation in the aftermath of the bank bailout and the bonus scandals that have rocked the U.S. financial sector, according to a Harris poll released on Thursday.

A report to be released Thursday questions the Bush administration’s decision to rescue “a company that apparently posed no systemic risk to the financial system.”

Sixteen months after they were seized to prevent collapse, companies remain wards of the state, running a tab that has now exceeded $125 billion.

Members of a government committee questioned whether the support that Citigroup received could pose future risks for the financial system.

British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers....

American International Group and federal overseers have decided to scrap a plan to use cash flows from life-insurance policies to repay $8.5 billion in federal aid as the market recovery has opened up other options.

GMAC plans to return to the stock markets with an IPO in the next two years, in a move aimed at gradually exiting from government help and eventually repaying its rescue aid.