Treasury prices rally after Bernanke says Interest rates to remain low
Federal Reserve chairman, Ben Bernanke, today told congress policy makers that the Fed will likely maintain interest rates at exceptionally low levels for extended periods. Following Bernanke's remarks treasury prices increased reversing a earlier losses. Bernanke said despite positive signs of an improvement in the economy, the job loss rate remains high and the unemployment rate continues its steep rise.
CIT may still file for bankruptcy
CIT Group Inc. warned it may still have to resort to filing for bankruptcy protection if not enough bondholders participate in a recently launched debt exchange, the company said in a filing Tuesday with the Securities and Exchange Commission. The lender offered the grim assessment only a day after major bondholders agreed to provide it with a $3 billion loan.
Calls for more transparency on use of TARP funds
The special inspector overseeing the Troubled Asset Relief Program, Neil Barofsky, testified Tuesday before the House Oversight and Government Reform committee and called for better disclosure and stronger conflict rules. Barofsky on Tuesday delivered a quarterly report to Congress sharply critical of Treasury's reluctance to better track how federal bailout money is being spent. According to Barofsky, the Treasury has accepted some of his recommendations for improved transparency, but have however not taken steps requiring all TARP recipients to report details on how the funds are used.