Eddy Finance Blog

The Downfall Of Madoff

http://www.usatoday.com/money/markets/2009-04-10-madoff-judge-bankruptcy_N.htm

As per a ruling by a
Manhattan judge, investors can now seek ‘an eye for an eye and a tooth for a tooth.’ Cheated and betrayed by Bernard Madoff, many investors have been seeking justice and the court has finally given its verdict in their favor. Madoff’s personal property can now be ‘taken over’ forcing this one-time financial magnate into bankruptcy.

In a ruling in federal court on Friday, U.S. District Judge Louis L. Stanton lifted a temporary order barring bankruptcy for Madoff while the government continued its search of his ill-gotten gains. As per the judge, victims can seek relief with a bankruptcy court’s “orderly and equitable administration of his individual estate”.

It is victory of truth. Justice reigns once more!

Freddie Mac Launches New Options For Home Owners

http://www.bizjournals.com/tampabay/stories/2009/03/02/daily63.html

Mortgage giant Freddie Mach is launching an initiative to give tenants and former owners of foreclosed properties an option to stay in their homes on a month to month lease basis. To be implemented through several national property management firms, the move is aimed at reducing the impact of foreclosure.

The mortgage giant has also announced that it will extend the eviction moratorium until April 1 to ensure that the current occupants become aware about the new initiative and the various new options available. The rent initiative also appears to be targeted at stabilizing property values besides keeping the homes occupied and preventing any kind of mischief. Now to qualify for a lease, the former owners or the tenants must show that they can afford to pay the rent decided by the property management firm.

http://www.freep.com/article/20090216/BUSINESS01/902160340/New+team+will+steer+a+new+auto+industry

As General Motors and Chrylser LLC work to draw turnaround plans and seek fresh assistance, the US government has appointed a task force to supervise the remodeling of the auto industry. The task force has to decide within a period of six weeks until March 31, whether bankruptcy of one or two of the players was one of the ways to revamp the segment.

Since the auto industry employs millions of people and associated with it is the fate of several dealers and auto part manufacturers, the government appears to be serious in its attempt to revive the fortunes of the automobile industry. The team will be headed by Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers and include members from the departments of Transportation, Energy, Labor, Commerce and Treasury, and the Environmental Protection Agency.

http://money.cnn.com/2009/02/06/news/economy/bank_failure/index.htm?postversion=2009020621

On Friday evening State regulators closed down three more banks. With this the total number of bank failures in the year 2009 has climbed upto 9. First Bank Financial Services (McDonough, Georgia), Alliance Bank (Culver City, California) and County Bank (Merced, California) are the three banks that have been closed.

The financial crisis is taking a toll on the banks. Last year was bad. 25 banks were closed in the year 2008. According to economist this year is going to be no different. As the financial crisis unfolds there are going to be more banks that are going to go under.

Let us just hope that the stimulus package comes into effect on time and that it works. It is good to hear that the plan might be put to vote this coming Tuesday so let us keep our fingers crossed.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/01/AR2009020102331.html?hpid=topnews

A huge number of people are heading for their area libraries. In fact, libraries have never received these many patrons. ‘Why libraries?’ you may ask. Because libraries offer free computer access, DVD loans and activities for adults and children. Jim Rettig, president of the American Library Association and a librarian at the University of Richmond, finds it paradoxical that even in times of budget cuts and reduction in staff and hours, library use is on a spiral rise. But such is the way of life! It is in the times of crisis that people search harder for free resources.