Bailout Chartbox

A useful chartbox from MarketBeat WSJ that summarises the sub prime bailout candidates so far and their status:

One Bailout to Bind Them

Bailout	What it Was	Why?	Who Was Helped	Who Paid?	Is it Working?
The Entity	A proposed “super-structured investment vehicle,” jointly created by several large banks, to buy debt that nobody wanted	In the third quarter of 2007, many banks realized that their off-balance sheet funds held scores of bad debts, and they wanted to find a way to offload it into a toxic waste dump	Nobody. The fund never came to fruition when most realized it was folly	Nobody paid for it; the banks paid by eventually moving the assets from their structured vehicles on their balance sheets	It is working in the sense that it did not come to fruition, for the betterment of everyone.
Bear Stearns	After the company’s stock slumped and its credit-default swaps exploded, the Federal Reserve intervened, eventually by having JP Morgan Chase & Co. buy the company for $10 a share	Bear Stearns was battered by chatter about no liquidity due to massive exposure of bad mortgages on their balance sheet	The bondholders of Bear, and arguably, J.P. Morgan, who snapped up the company for a song	J.P. Morgan paid $30 billion, with a $28.8 billion loan from the Fed	The next target on everyone’s list is Lehman Brothers, but they have survived right now.
The various Fed lending facilities	A group of lending facilities, some existing, some new, put together by the Fed that liberalized existing rules as to who could access the Fed’s lending windows	Various market spreads widened considerably in December, and then again in March, inhibiting short-term borrowing and the regular functioning of the banking system	The short-term financial markets	The Fed is lending money that is expected to be repaid	Market spreads, indeed, have been reduced
Hope Now Alliance	An effort by the government, private lenders and others to restructure mortgages	Housing prices have slumped and many homeowners have faced the re-setting of mortgage rates to cost-prohibitive levels	Homeowners facing foreclosures	Lenders, mostly	The program has helped some, but others contend that it is being overwhelmed by the sheer volume of foreclosures. A Credit Suisse report predicted that 6.5 million loans will fall into foreclosure over the next five years, or about 8% of all U.S. homes.
Fannie Mae/Freddie Mac	A government-led plan to shore up mortgage guarantors Fannie Mae and Freddie Mac	The two companies were seen as being on the brink of insolvency, and together they guarantee $5 trillion in mortgage debt	The expectation is for this to alleviate concerns in the mortgage markets	The Federal Reserve is expected to lend if necessary, but a giant guarantee of Fannie and Freddie’s debt is most likely to end on the taxpayers’ shoulders	Too early to tell.

p/s photos: Aum Patcharapa Chaichua