Top banks lobbying received larger rescue plan

NEW YORK - more aggressively pressure before the financial crisis the worst Bank loans made during the economic recession - and rescue dollars more it received, according to a study published this week by the National Bureau of Economic Research.

The report, entitled "A Fistful of Dollars: Lobbying and the financial crisis," said that banks lobbying efforts may be motivated by short-term profit gains, which can have devastating effects on the economy.

"Overall, our results indicate that the political influence of the financial industry played a role in the accumulation of risks and therefore contributed to the financial crisis," said the report, drafted by three economists of the Monetary Fund International.

The data collected by the three authors - Deniz Zaagi'igan, Prachi Mishra and Thierry Tressel - show that the more aggressive lobbiers in the financial industry from 2000 to 2007, has also made more toxic mortgages. They securitized most of the debt for real estate investors and their stock prices more closely correlated to the recession and lending plan rescue that followed.

Loans banks has also suffered from crime higher during the recession.

What economists could not definitively determine was the motivation of the banks of lobbying. If the banks were looking to generate income at the expense of the company, it would be logical to restrict their lobbying.

If the banks were especially concerned of profit in the short term and not think do not long term consequences, then Executive compensation practices should be modified, said the report. And if the banks just wish to inform legislators and were too optimistic about their future, it would be more difficult to propose reforms.

BIG LOBBYING, OF WHOLESALE RESCUE PLANS

When the bubble burst, the banks that spend more on lobbying received "a large piece of the cake" in the rescue plan of 700 billion dollars in the fall of 2008.

For example, the report cites Citigroup Inc. (c.n.r.) $ 3 million to lobby against HR-1051 predatory loan Consumer Protection Act of 2001 and the Bank of America Corp. (BAC).(N) spending $ 1 million to put pressure on housing and banking issues.

HR-1051 never signed into law, nor was 93% of all invoices for the promotion of more stringent regulations from 1999 to 2006. However, two bills that significantly reduces the restrictions on the mortgage market is in force, access to property American and Economic Opportunity Act of 2000 and the Act on the implementation of the American Dream Fund, 2003.

Citigroup and Bank of America each finally receive 45 billion of the rescue plan Fund, JPMorgan Chase & Co (JPM).(N), Wells Fargo & Co (WFC).(N) or other large commercial banks.

Now that Frank Dodd financial reform bill has passed, the big banks have been aggressively lobbying against them, are too severe restrictions. Among the top items on the agenda of the industry's lobbying are stronger capital regulation, but also a Bureau of financial Protection, new rules on derivatives trade and restrictions on the exchange of exclusive rights.

In an interview with Reuters Thursday, Zaagi'igan counterparts of the Federal Reserve Board expressed concern that "certain concepts would get watered down in the process because the financial industry is pressure against them."

On Tuesday, the House Financial Services Committee voted to delay the implementation of the reform of derivatives of 18 months. Although few expect such a measure to clear the Senate and be signed by the President, some Wall Street executives are pressing for slower rulemaking.

At a demonstration Tuesday, Morgan Stanley (MS)(N) CEO James Gorman, warned that implementation of reforms could too hastily "" tip the world's economies into recession. ""

Economists report describes the negative impacts of the lobbying of the Bank, but Zaagi'igan stated that this time, Wall Street's interests can be aligned with the whole of the economy - if by chance.

She said Bank lobbying is "not bad" and current activities can act as counterweight to tilt after the crisis of the regulators to keep banks left tight.

AIG displays 1 q loss on rescue recovery, quake Japan

NEW YORK--the reimbursement of the aid of rescue and losses caused by the earthquake and the tsunami that followed that ravaged the northeast coast of the Japan led to a loss in the first quarter to American International Group Inc..

The global insurance Thursday said a loss, after payment of preferred dividends of $ 543 million, or 35 cents per share. That compared to a net profit of 359 million dollars, or $2.66 per share, a year earlier.

Revenues fell to 17.44 $ 18.56 billion billion last year.

The loss is essentially linked to AIG booking a charge of $ 2.4 billion in its reimbursement of a New York Federal Reserve Bank ready more two years earlier. During this time, British company Chartis, his business in property-casualty recently reorganized, posted $ 1.7 billion in losses from the disaster of March 11 earthquake disasters and the tsunami in the Japan, the New Zealand earthquake and massive floods in Australia. It was up to 500 million dollars in losses from disaster ended first quarter.

AIG also set aside $ 385 million to pay for the costs associated with the sale of its Treasury shares. Operating profit, however, increased by $ 2.0 billion for the quarter of $ 637 million in the period of the previous year.

The increase in the value of its investments, its portfolio of capital markets earned $ 277 million. Its life insurance company, SunAmerica Financial Group, said a flat operating income of $ 1.1 billion.

In March, AIG paid Department of the Treasury almost 7 billion to trim its balance at 60 billion dollars to rescue some 182 billion in 2008, as the Government of the United States rescued him from the fall. The Department of the Treasury still has 92% of AIG, through its common shares of the company, which it is planned to start selling in May. The Treasury officials have said they expect to recover the full amount of rescue.

Since 2008, AIG has sold 33 companies and raises over $ 57 billion in cash and in titles. Last year alone, AIG has raised more than 37 billion, mainly by selling two international divisions of life insurance.

AIG stock fell 46 cents to 30,33 $ after normal hours of business following the publication of the report of the remuneration. The stock had closed the regular session, 85 cents, or 2.7 per cent, to $30.79.

AIG displays 1 q loss on rescue recovery, quake Japan

NEW YORK--the reimbursement of the aid of rescue and losses caused by the earthquake and the tsunami that followed that ravaged the northeast coast of the Japan led to a loss in the first quarter to American International Group Inc..

The global insurance Thursday said a loss, after payment of preferred dividends of $ 543 million, or 35 cents per share. That compared to a net profit of 359 million dollars, or $2.66 per share, a year earlier.

Revenues fell to 17.44 $ 18.56 billion billion last year.

The loss is essentially linked to AIG booking a charge of $ 2.4 billion in its reimbursement of a New York Federal Reserve Bank ready more two years earlier. During this time, British company Chartis, his business in property-casualty recently reorganized, posted $ 1.7 billion in losses from the disaster of March 11 earthquake disasters and the tsunami in the Japan, the New Zealand earthquake and massive floods in Australia. It was up to 500 million dollars in losses from disaster ended first quarter.

AIG also set aside $ 385 million to pay for the costs associated with the sale of its Treasury shares. Operating profit, however, increased by $ 2.0 billion for the quarter of $ 637 million in the period of the previous year.

The increase in the value of its investments, its portfolio of capital markets earned $ 277 million. Its life insurance company, SunAmerica Financial Group, said a flat operating income of $ 1.1 billion.

In March, AIG paid Department of the Treasury almost 7 billion to trim its balance at 60 billion dollars to rescue some 182 billion in 2008, as the Government of the United States rescued him from the fall. The Department of the Treasury still has 92% of AIG, through its common shares of the company, which it is planned to start selling in May. The Treasury officials have said they expect to recover the full amount of rescue.

Since 2008, AIG has sold 33 companies and raises over $ 57 billion in cash and in titles. Last year alone, AIG has raised more than 37 billion, mainly by selling two international divisions of life insurance.

AIG stock fell 46 cents to 30,33 $ after normal hours of business following the publication of the report of the remuneration. The stock had closed the regular session, 85 cents, or 2.7 per cent, to $30.79.

Kenny the Ireland promised rates of rescue deal

NEW YORK - Irish Minister Enda Kenny said Wednesday it would press for the lower rate of interest for the Dublin EU rescue plan and the IMF but insisted higher corporate tax would not be part of such an agreement.

Said Kenny had already reached an agreement in principle to lower the almost 6% interest rate on the rescue plan of billions of euros 85 International Monetary Fund and the European Union, and that details would be martelés once Portugal finalize the details of his pending bailout.

"During the recent (eurozone) meeting in Brussels it was agreed that countries in the rescue plan could be a reduction in interest rates will apply to them," Kenny told Reuters Insider TV.

Kenny said that once the details have been finalised for a rescue plan for the Portugal, who said late on Tuesday, it reached a three-year rescue plan, deal with the EU and the IMF, Dublin can negotiate "an interest rate reduction that would be important in the case of the Ireland."

But he refused to take account of the rate of corporate tax higher Ireland and said that his visit to New York is in part to reassure American companies could consider jobs in Ireland tax of 12.5% of the country was set in stone.

"The corporate tax rate is not negotiable," he said. "We will not our 12.5% corporate tax rate." "Our country is open for business".

"ABUSE OF CONFIDENCE".

Kenny said such increases of taxes "would be a massive breach of confidence, particularly with foreign direct investment in this country."

After a Summit in March the euro zone, said Kenny that he had reached an agreement in principle to reduce the interest rate of Ireland of 1 per cent, but that he was not prepared to raise the corporate tax in exchange for the agreement.

The guardian of the Portugal later on Tuesday, Prime Minister Jose Socrates announced that Lisbon had reached a bailout deal with the EU and the IMF after weeks of talks, becoming the third country in the euro area to do thisAfter the Greece and the Ireland.

The rate of interest on the rescue plan of the Portugal, which the Socrates Office said 78 billion euros in total, should be defined at a meeting of Ministers of Finance of the eurozone in mid-May.

The Ireland rescue plan agreed last November failed to resolve the banking crisis of the Ireland and the Government of Kenny, elected in February, said that the current package should be changed to avoid the risk of failure.

The leader of Fine Gael said that his coalition Government has pledged to sell 2 billion euro of value of assets owned by the State and any sale will be decided on the basis of which deals could add most of the jobs in the Irish economy at Bay.

On the banks in difficulty the Ireland, Kenny said if Anglo Irish Bank needed more help that holders will be expected to contribute.

"If a requirement for the injection of capital more in Anglo Irish Bank, the Government to treat accordingly and we examine the question of senior carriers in very different ways that we made when we decide to burn senior bondholders with Allied Irish Bank or Bank of Ireland"he says."

A solution to the Irish crisis of bank financing and a reduction of the price of very unpopular rescue EU and the IMF would be a huge blow for Kenny. But for such an agreement it will come under intense pressure to concede on the rates of the Ireland low company taxation, considered an unfair advantage in other capitals European.

Government of Kenny has said he wants to cut bill for taxpayers to bail out the banks--46 EUR billion and climbing - imposing losses on non-senior bonds in Irish banks not covered by the guarantee of the State, a value of EUR 16 billion.