CIT gets emergency loans
CIT Group Inc. has managed to get together $3 billion of emergency financing from bondholders enough to keep the struggling lender out of bankruptcy, a person close to the matter said, Reuters reported. The rescue has helped the troubled lender get time to restructure its debt. The loan however according to analysts is merely a delay of bankruptcy.
TARP money used for lending
The U.S. regulatory authority today released a report detailing how banks who received the TARP funds are using the money and according to the report Banks are using that money to fuel residential mortgage lending but are also holding onto some of it through the recession. A total of 260 banks nationwide have received TARP funds and 83 percent of them are using a portion or all of it to make loans.
Lockhart: The US economy ‘appears to be in stabilization mode'
Federal Reserve Bank of Atlanta President Dennis Lockhart in a speech today in Tennessee said the U.S. economy appears to be in stabilization mode. He described the economic recovery as anemic with weak growth taking place over the next few years. The Fed has a number of tools being readied to unwind the policies used to fight the recession, and it will be some time before their use is appropriate, said Lockhart.