U.S. Treasury Department
FHA in cash crunchPosted by RJ and Makay on Feb 13, 2012 |
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The Federal Housing Administration (FHA) may require a Treasury Department cash infusion for the first time in its 78-year history, according to a budget projection report released today. The agency, which has become a major source of financing for home purchases since the housing crisis four years ago, burned through much of its reserves this past year as defaults mounted on loan guarantees.
Securities regulators have issued subpoenas to hedge funds and other trading firms as it probes possible insider trading prior to the U.S. government’s long-term credit rating cut last month, the Wall Street Journal reported, citing people familiar with the matter. SEC officials have demanded more information concerning specific positions taken shortly before the August 5 Standard & Poor’s (S&P) downgrade of the U.S. sovereign debt rating to AA+ from AAA.
The recapitalization of bailed-out insurer American International Group Inc. could close this week. Last Thursday night, AIG's board approved the issue of warrants to buy 75 million shares of AIG common stock. The warrants stipulate that all parties to the recapitalization agree to close January 14, which is this Friday.
