WASHINGTON - (09/15/05) -- Lawmakers and financial institutionsare proposing a massive government-backed bailout for home,business and other loans hat may fail as a result of HurricaneKatrina and its aftermath. Under one scenario, the government wouldcreate a fund to buy impaired loans in storm-affected areas, thenpackage them into bonds, in a fashion similar to the S&Lbailout. The proposal was being endorsed this week by banking tradegroups, as well as some consumer groups, who are worried aboutuninsured losses accruing to homeowners and other victims of themassive storm. "We would like to be involved in the creation andimplementation of that fund, however, to ensure that consumers andhomeowners are protected as well as the financial institutions,"said Hilary Shelton, director of the NAACP's Washington Bureau,during a hearing Wednesday before the House Financial ServicesSubcommittee on Financial Institutions.
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Synovus Financial demonstrated at an industry conference how it is using Microsoft's Copilot to help its staff address customers' concerns.
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The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
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Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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