Bailouts, Bank Bailout | featured news

U.S. mortgage giant Fannie Mae made money in the first three months of the year and is not seeking additional federal aid. It's the first time the company has reported a net income gain since it was taken over by the government during the 2008 financial crisis....

The U.S. may wind up posting a profit of more than $15 billion from the rescue of AIG, the Government Accountability Office said.

Chief executives of AIG, GM and Ally Financial, three companies bailed out by U.S. taxpayers and which remain partly owned by the U.S. Treasury, won't receive overall pay increases this year.

The federal regulator for Fannie Mae and Freddie Mac said it would eliminate performance-based bonuses for senior executives at the two mortgage-finance firms.

Bank of America NA prevented homeowners from receiving mortgage-loan modifications under a federal program in order to avoid millions of dollars in losses while benefitting from financial incentives for participating in the program, according to a complaint unsealed in federal court Wednesday.

American International Group (AIG) is selling part of its stake in AIA Group to raise about $6 billion to help the U.S. insurer repay a huge federal government bail-out.

Fannie Mae said it will request $4.6 billion more in government aid after posting a $2.41 billion fourth-quarter loss.

Banks earned $13 billion in secret cut-rate loans from the Federal Reserve during the financial crisis, Bloomberg reports... "Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure," Cummings wrote in his letter.

A company run by former American International Group Chief Executive Maurice "Hank" Greenberg has sued the United States, claiming that the government takeover of the insurer was unconstitutional.

The leaders of Germany and France, the eurozone's two biggest economies, say they have reached agreement on strengthening Europe's shaky banking sector.