Banks, U.s. Treasury | featured news

The Treasury said on Friday it is changing the way Fannie Mae and Freddie Mac will repay taxpayers in a move the Obama administration said would accelerate the winding down of the government-owned mortgage financiers.

Shares of American International Group Inc fell more than 3 percent on Wednesday after the insurer and the U.S. Treasury sold $8.7 billion worth of stock.

The department persuaded some big banks to pay more than market estimates to repurchase warrants issued to the government during the financial crisis, suggesting taxpayers could benefit from costly financial-rescue programs.

With the wiring of nearly $10 billion to the Treasury, U.S. Bancorp and BB&T became the first large financial institutions to announce that they have repaid the government in full.

The former financing arm of General Motors will receive $7.5 billion, which would bring its total federal assistance to more than $12 billion.

Fannie Mae, operating under a federal conservatorship since September, asked the US Treasury for a $19 billion capital investment as a seventh straight quarterly loss drove the mortgage-finance company's net worth ...

The Federal Reserve and Treasury plan to release results of their tests assessing the health of the country's 19 largest banks next Thursday, later than previously planned.