warren buffett hank paulson
U.S. Treasury Secretary Henry Paulson (L) shares a laugh with financier Warren Buffett, Chairman and CEO of Berkshire Hathaway, at the Conference on U.S. Capital Market Competitiveness in Washington March 13, 2007.

  • Warren Buffett phoned Treasury Secretary Hank Paulson at the height of the 2008 financial crisis with a suggestion that likely saved the US economy from an even deeper recession.
  • The famed investor and Berkshire Hathaway CEO proposed the government plow capital directly into banks instead of only buying their distressed assets.
  • Paulson quickly gathered the bosses of the nation’s biggest banks and convinced them to accept billions of dollars in investment.
  • The Treasury demanded preferred stock paying chunky dividends, as well as stock warrants in return, emulating Buffett’s bailout of Goldman Sachs in September 2008.
  • Former President George W. Bush called it “probably the greatest financial bailout ever” and said it “probably saved a depression.”
  • Visit Business Insider’s homepage for more stories.

Warren Buffett made a late-night call on Saturday, 11 October 2008 that likely spared the US from an even more devastating financial crisis.

The billionaire investor and Berkshire Hathaway CEO dialed then-Treasury Secretary Hank Paulson, the pair said in “Panic: The Untold Story of the 2008 Financial Crisis,” a documentary released in 2018.

“Hank, this is Warren,” Buffett said. A tired and groggy Paulson’s first thought was, “My mom has a handyman named Warren, why is he calling me?”

Read moreThese 30 global stocks are positioned to stay on top in the 4th quarter as the contrast between a recovering economy and rising COVID cases keeps markets volatile, RBC says

Buffett was calling about the Troubled Asset Relief Program (TARP), which authorized the Treasury to spend $700 billion purchasing distressed assets from banks. Lawmakers passed it in a desperate effort to

BANGOR — The City Clerk’s office will be moving to the Cross Insurance Center Monday to Friday from 8 a.m.-4:30 p.m. starting Tuesday, Oct. 13. Regular City Clerk services such as business licenses, marriage licenses, birth certificates and voter registration will continue to be offered in-person during regular hours.

The City Clerk’s Cross Insurance Center location will stay open until 5:30 p.m. each day for early in-person voting. Early voting closes at 5 p.m. on Friday, Oct. 30. This will allow for the city to follow physical distancing guidelines while continuing to provide in-person City Clerk services.

“As a city we continue to prepare and take proactive steps for what we anticipate to be high voter turnout for this election,” said Bangor City Manager Cathy Conlow. “This move gives us more room for people to physically distance and stay safe while utilizing important City services like voter registration and early voting.”

With the City Clerk’s office moving to the larger space, the Treasury Department for the City will relocate back to City Hall, effective Tuesday, Oct. 13. Hours for the City’s Treasury Department will be Monday-Friday from 8 a.m. – 4:30 p.m. All Treasury Department services such as vehicle registrations, property tax payments, and sewer/stormwater payments will once again be offered in-person at City Hall.

Many of the in-person services are also offered on the City of Bangor website at www.bangormaine.gov.

Source Article

By Stephen Culp

NEW YORK, Oct 7 (Reuters)U.S. stocks rebounded to close sharply higher on Wednesday after incremental stimulus proposals helped investors recover from the shock of President Donald Trump’s announcement on Tuesday that he would halt stimulus talks until after the Nov. 3 election.

Increased risk appetite also resulted in weaker Treasury prices and a steepening yield curve as markets were heartened that at least some fiscal aid measures to help an economy battered by the coronavirus pandemic were still on the table.

While White House Chief of Staff Mark Meadows said he was “not optimistic for a comprehensive deal,” Trump appeared to relent somewhat, urging Congress to pass a $25 billion airline bailout, a move also supported by U.S. House of Representatives Speaker Nancy Pelosi.

In separate Twitter posts, Trump also expressed willingness to approve sending stand-alone $1,200 relief checks to Americans and urged Congress to approve the $135 billion payroll protection program for small businesses.

“Investors grow optimistic when there is any type of stimulus, whether it’s a large package or more discrete,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “There’s interest on both sides in having some kind of stimulus as the election approaches.”

“The most important issue for them is who gets to take credit for it,” Sroka added.

The U.S. Federal Reserve released the minutes from its latest monetary policy meeting, which revealed many members of the Federal Open Market Committee said their economic outlook assumed additional fiscal support, and if a stimulus package from Congress was too small or came later than expected, the economic recovery could be slower than anticipated.

This echoed Fed Chair Jerome Powell’s warning on Tuesday that the economic recovery would slip into a downward spiral if Congress fails to provide additional fiscal

By Stephen Culp

NEW YORK, Oct 7 (Reuters)U.S. stocks bounced back in a broad rally on Wednesday as investors recovered from the shock of President Donald Trump’s announcement that he intended to halt stimulus talks until after the election, and were relieved that pandemic relief could be passed incrementally.

The risk-on mood was also reflected in weaker Treasury prices and a steepening yield curve as markets were heartened that at least some fiscal aid measures were still on the table, a day after Trump’s tweet sent markets into a nosedive.

While White House chief of staff Mark Meadows said he was “not optimistic for a comprehensive deal,” Trump relented somewhat, urging Congress to pass a $25 billion airline bailout, a move also supported by U.S. House Speaker Nancy Pelosi.

In another tweet on Wednesday, Trump also urged Congress to approve the $135 billion payroll protection program for small businesses.

“If you can’t agree on an overall package but there are elements that you can agree on go ahead,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

“Two elements that are needed are some kind of bailout for the airline industry, and additional aid to allow people to pay bills and buy groceries,” Tuz added. “Those are things that are unequivocal and agreed on by both sides.”

The U.S. Federal Reserve released the minutes from its latest monetary policy meeting, which revealed many members of the Federal Open Market Committee said their economic outlook assumed additional fiscal support, and if a stimulus package from Congress was too small or came later than expected, the economic recovery could be slower than anticipated.

This echoed Fed Chair Jerome Powell’s warning on Tuesday that the economic recovery would slip into a downward spiral if Congress fails to

It may be postponed for now, but what happens to the Treasury market if and when the next COVID-19 bailout bill passes? If President Trump is reelected, it will likely go through in November. If Joe Biden wins, then we could have an even bigger bailout in January when he takes power.

Mark Cabana, head of US Rates Strategy at Bank of America, as quoted by Zero Hedge, believes that if and when it happens, issuance at the long end of the curve will be increased. He’s right. The question I’ll deal with here is, by how much?

Here I’ll bring you through the math precisely, step by step, and show why the answer is between three and six times the issuance rate of the past six years. The exact rate depends on how fast the Treasury needs to raise the money, and that depends on how fast Congress proposes to spend it all. If recent history is any guide, then the answer is pretty fast.

The end point I want to make here is that a 3-6x rate of increase in Treasury note supply going forward would be unprecedented and could trigger foreigners to sell their holdings, triggering a spike in long-term rates, a big fall in the dollar index (UUP) on foreign exchanges, and a spike in the price of gold to new all time highs and beyond. No – rising long-term rates would not bring down gold’s dollar price, not if it’s being spurred by international bond selling and inflation fears. It didn’t in the late 1970’s, and it won’t now.

Where We Are Now

In the ZeroHedge piece, Cabana is quoted directly as follows:

“The limited supply impact (in Treasury bills) is due to the very large existing UST cash balance and recent coupon supply increases