Stock Market News: Chrysler Bankruptcy and TARP Repayment
It’s been an interesting morning on the stock market. Indexes have been choppy and mixed, with the market swinging between gains and losses. Right now, the Dow is down slightly, while the Nasdaq and the S&P 500 are in positive territory. Influencing the stock market are these two interesting bits of news:
- Chrysler bankruptcy halted. Even though Chrysler isn’t publicly traded, the stock market is still interested in the company’s bankruptcy proceedings. For now, though, they have been stopped. Ruth Bader Ginsburg, a Supreme Court Justice, ordered the halt of the Chrysler bankruptcy as pension funds protest the way secured bond holders are being compensated under the bankruptcy deal brokered by the governement. The outcome could conceivably have an effect on GM’s bankruptcy proceedings.
- 10 banks ready to repay TARP. The 10 banks that were ordered to raise capital after the stress test results were made public in May have presented plans to increase their cash. This announcement accompanied the confirmation by the Treasury Department that these 10 banks could begin repaying TARP funds. The TARP funds came with increased regulation, and many of the affected banks have been anxious to cut the strings. Paying back TARP would result in laxer regulation for these banks.
In the end, the how investors feel about these — and other developments — dictate the way the stock market moves. When investors feel as though developments will lead to increased profits and share prices, they buy and send the stock market higher. Without confidence, though, investors rush to sell, and values plummet.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
June 10th, 2009 at 10:35 am
[…] remain afloat — and even somewhat competitive. The announcement comes one day after the Treasury Department cleared 10 banks to repay their TARP funds. Citi, however, was not one of the named banks. The 10 banks cleared to exit TARP […]