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Mortgage Industry News
Recoup Losses From Tarp Program
01/12/2010
China ordered banks to set aside more in reserves to curb any kind of asset bubble that may be forming; stocks are down, bonds are rallying. President Obama plans to raise as much as $120B by imposing a fee on financial institutions to help recoup the losses from the TARP program. Details of the fee are not known yet, but it may include one or a combination of an income surtax, an excise tax or a fee pegged to the value of assets. Right now, the futures market is pricing in an 84% chance that the Fed keeps rates somewhere between 0% and .25% through April 28th, 2010. Currently, the Ten Year yield is at 3.74%(3.83% yesterday) and the 2-10 yield spread is at 282bps, flattening 5bps since yesterday morning.
