Banks, Bailouts | featured news

Senator Mitch McConnell said that the proposal would continue government bailouts of big banks.

Top officials say Washington Mutual was largely the victim of the housing downturn. But two former WaMu risk officers tell a Senate panel the failed savings and loan took too many chances.

President Obama’s proposal for a direct tax on banks to pay for future bailouts is gaining momentum in Europe.

Members of a government committee questioned whether the support that Citigroup received could pose future risks for the financial system.

British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers....

GMAC plans to return to the stock markets with an IPO in the next two years, in a move aimed at gradually exiting from government help and eventually repaying its rescue aid.

JPMorgan Chase's Jamie Dimon pulled in a roughly $17 million bonus in restricted stock and options for 2009, making him one of the best-paid banking chiefs around.

Two Democratic senators on Thursday proposed legislation that would impose a one-time tax on bonuses paid to executives of companies bailed out with taxpayer money.

American International Group plans Wednesday to pay another round of employee bonuses worth about $100 million, said several people familiar with the matter.

Treasury Secretary Timothy F. Geithner said the government rescued American International Group Inc. to prevent a "catastrophic" blow to the U.S. economy, not to save any of AIG's counterparties.