KeithHennessey.com

We have so far: created our example of Large Bank; described TARP I, in which the government would buy bad assets from banks; and described TARP II, in which the government made direct equity investments in banks. The Bush Administration implemented TARP II as the $250 B Capital Purchase Program (CPP), although less than $250 [...]

Despite Secretary Geithner’s statement to the contrary, I still think the Administration is running out of room within the $700 B Troubled Assets Relief Program (TARP).  In my last four posts on TARP funding (1 2 3 4), I have stuck to what I think I can demonstrate analytically.  I am now going to shift [...]

The President’s Working Group on Financial Markets met at 8:30 AM today to announce the specifics of the new policy actions described by the President in the Rose Garden earlier this morning. This note is just a collection of primary source documents from today’s announcement.  Generalists will likely be interested in the first six documents, [...]

President Bush spoke at 8:02 AM this morning in the Rose Garden. Good morning.  I just completed a meeting with my working group on financial markets.  We discussed the unprecedented and aggressive steps the federal government is taking to address the financial crisis.  Over the past few weeks, my administration has worked with both parties [...]

President Bush gave a major policy address on the State Floor of the White House this evening. THE WHITE HOUSE State Floor 9:01 P.M. EDT THE PRESIDENT:  Good evening.  This is an extraordinary period for America’s economy.  Over the past few weeks, many Americans have felt anxiety about their finances and their future.  I understand [...]

Here’s what President Bush said at 10:45 AM today in the Rose Garden. This is really important. Good morning.  I thank Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox for joining me today. This is a pivotal moment for America’s economy.  Problems that originated in the credit markets — [...]