The hope of American taxpayers to obtain restitution of the rescue of Bear Stearns and AIG, which cost the country billions of dollars, be increased yesterday after the Federal Reserve reported capital gains from assets purchased from both companies. Increasing the value of mortgage bonds, which caused the collapse of Bear Stearns and AIG stood on the brink of bankruptcy has led to a capital gain of all three investment schemes, which are concentrated assets of both companies, reports Financial Times. Accounting profit, which the Fed reported in the three schemes, known as Maiden Lane I, II and III, demonstrated an increase in the value of the securities, which were recently described as “toxic”. This can lead to decay of the criticisms of the central bank of the billions that were off to rescue the financial system from collapse. According to official data, lost profits or the difference between the market value of securities and loans granted by the government to purchase, was 10.8 billion dollars on Wednesday, the newspaper added. Two of the investment schemes were designed to remove problem assets from the balance of billions of dollars of AIG. They have been profitable for quite some time, while the third – that in which they were collected at the bad assets of Bear Stearns, just out of a plus.
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The U.S. banks do everything possible to take advantage of low interest rates and rising confidence in myself to the strong performance of the sector this year. This is done through the issuance of significant amounts of new debt, thereby setting the basis for solid gains in the coming years, writes Financial Times. The high interest in fundraising in the U.S. is in sharp contrast with what is happening in Europe, where banks have problems in the issuance of bonds for government debt crisis in the euro area. In recent months, banks such as JPMorgan, US Bancorp, Goldman Sachs and Morgan Stanley easily sell bonds, which indicates a change in market sentiment and increased confidence in the sector. Less than two years after massive U.S. government intervention to rescue the financial system, U.S. banks managed to raise over 7 billion dollars by issuing debt within only one week. According to data from Dealogic, it is the largest amount of new bonds placed for one week since September last year. The US Bancorp has attracted $ 1 billion by selling five-year bonds at 2.45 percent interest. This is one of the lowest interest rates in history paid by Bank in bond, adds Financial Times.
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