Chicago Mortgage Company

PIMCO's Gross Says Fed Must Act as Clearing House and Buy Commercial Paper

Mon, 06 Oct 2008 20:51:56 +0000

The head of the world's largest bond fund said the Fed needs to take
additional steps to calm markets and instill confidence.

Bill Gross, managing director and co-chief investment
officer at PIMCO, said the Federal Reserve must act as a clearing house
for institutional transactions, buy commercial paper and cut the Fed
funds rate to 1.00%.

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Treasury to Name Former Goldman Banker as Interim Head of Rescue Op

Mon, 06 Oct 2008 18:39:43 +0000

Neel Kashkari, former vice-president at Goldman Sachs and current
assistant secretary of international affairs at the U.S. Treasury, is
expected to become the interim head of the $700 billion
rescue package, according to anonymous sources who spoke to the
Washington Post and the Wall Street Journal.

The sources say the 35-year old Kashkari would…

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World Bank President Zoellick Says G7 "Not Working"

Mon, 06 Oct 2008 15:37:45 +0000

Speaking at the Peterson Institute for International Economics in
Washington D.C. on Monday, World Bank President Robert Zoellick
said the G7 is "not working" and called for a new multilateral
network for the new global economy.

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Countrywide Customers to Get Foreclosure Assistance

Mon, 06 Oct 2008 14:38:56 +0000

In a sweeping deal that could be worth more than $8.4 billion,
Bank of America Corp. has agreed to settle claims
brought by state Attorneys General regarding certain risky loans
originated by Countrywide Financial Corp. The move will diffuse
some of the legal problems Bank of America inherited with its purchase of
Countrywide Financial Corporation last July.

The new program will involve the creation of a proactive home
retention solutions expected to affect nearly 400,000 former
Countrywide customers.

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Wachovia Says Deal With Wells Fargo Still Stands, Citigroup Can Top Offer

Mon, 06 Oct 2008 13:14:01 +0000

In New York Appeals Court, Wachovia Corp. has
succeeded in over-turning the emergency order by Justice Charles Ramos
issued yesterday in New York State Supreme Court which gave
Citigroup Inc. the sole legal authority to negotiate
with the bank. Citi announced last Monday they'd be buying some of
Wachovia's assets. Wachovia said a deal made later with Wells Fargo on
Friday to purchase the entirety of their assets is still legitimate.

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Treasury May Buy Some Bad Apples From Fannie Mae and Freddie Mac

Mon, 06 Oct 2008 12:43:04 +0000

Mortgage giants Fannie Mae and Freddie
Mac could possibly sell some bad assets to the U.S. Treasury,
according to a media report. James Lockhart, director of the Federal
Housing Finance Agency (FHFA) which now oversees the two companies, gave
a television interview to C-SPAN.

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House Approves Financial Rescue Plan in 263 to 171 Vote

Fri, 03 Oct 2008 16:40:21 +0000

After days of deliberation, the House of Representatives voted
in favour of the Emergency Economic Stabilization Act of 2008 on
Friday in a vote of 263 to 171, allowing the deployment of up to $700
billion to purchase illiquid assets from financial entities.

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Citigroup Defends Wachovia Takeover After Surprise Wells Fargo Bid

Fri, 03 Oct 2008 15:27:09 +0000

"Citi has substantial legal rights regarding Wachovia and this
transaction `Wachovia's agreement to a transaction with Wells Fargo is in
clear breach of an exclusivity agreement between Citi and Wachovia,'"
Citigroup officials said in a statement.

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Schwarzenegger Warns California May Have to Resort to Emergency Fed Funding

Fri, 03 Oct 2008 14:57:09 +0000

In an e-mailed statement to Treasury Secretary Henry Paulson,
California Governor Arnold Schwarzenegger said the State of
California may have to turn to the Federal Reserve for
emergency funding should $700 billion bailout package
fail to pass.

"This credit crisis has the power to grind the U.S. economy to a
halt," Schwarzenegger wrote in the e-mail to Paulson.

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The Sad Reality Foreclosure Alley

Fri, 03 Oct 2008 13:15:43 +0000

"Trash-Outs" and painting brown grass green, an eye opening video at one
area hard hit by this crisis:

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