The U.S. Treasury Department plans to recruit private investors to take toxic assets off banks' balance sheets. Senior Editor Paddy Hirsch explains how the plan is supposed to work.
Millions of Americans are wondering why AIG has paid so much taxpayer money to other banks. One reason is because AIG has had to honor "collateral calls" — demands made by banks on the insurance contracts it's written. Senior Editor Paddy Hirsch explains,
Chances are the loan you got for your car or house in recent years ended up being bought by investors in a process called securitization. Some blame that process for or current economic mess and say it shouldn't be allowed to continue. Bob Moon reports.
Bankers have been debating bringing back the uptick rule for months, if not years. This week the debate made it to Capitol Hill. Senior Editor Paddy Hirsch gives a quick and dirty explanation of what the uptick rule is, and why it could be reinstated to turn the American taxpayer into one of Citigroup's biggest stockholders. Senior Editor Paddy Hirsch explains.
Tangible Common Equity used to be an obscure and rarely-used accounting term. Today it's one of the main motivators behind the government's decision to turn the American taxpayer into one of Citigroup's biggest stockholders. Senior Editor Paddy Hirsch explains.
Marketplace Senior Editor Paddy Hirsch can usually be found answering questions on complex financial terms at the Marketplace Whiteboard. Today, Renita Jablonski asks him some additional questions from listeners in the studio.
A debate is raging in Washington, D.C., about how to deal with America's foreclosure problem. One proposal is to restructure the loans using a tool usually seen in bankruptcy courts: The "cramdown." Senior Editor Paddy Hirsch explains.
As markets have deteriorated, "write-downs" have figured prominently in more and more corporate reports. What are write-downs all about? Marketplace Senior Editor Paddy Hirsch explains.
