Federal regulators have issued a series of warnings that they believe the financial crisis could have been avoided if they had done a better job monitoring the companies’ performance.
WSJ’s Mark Suster reports.
Photo: Getty Images.
Federal regulators issued a statement Thursday saying they do not believe the government should have bailed out Wesley Financial and its subsidiaries in 2012, and that it “would have done so more effectively” had it not been for the financial collapse of 2008.
WSZ’s Robert Costa reports.
WSJD’s Chris Isenstadt explains why Wesley’s woes are a key reason the company might not have received a bailout in the first place.
The company has been the subject of intense scrutiny since it collapsed, and the federal government says it will seek billions in relief from the taxpayers.
WSJB’s Mark Felsenthal reports.
Federal officials also issued a warning that the bailout may not have been enough to save Wesley.
They said the company could have avoided the financial meltdown with better oversight.
WSSA’s Mary Jo Foley reports.
The Federal Reserve Board says the Wesley bailout is not a bad deal for taxpayers, and it will ask Congress for another bailout.
The Fed’s statement said Wesley would be “likely” to receive another bailout, if it fails to comply with a requirement that it make “appropriate changes to its governance structure and practices” by Feb. 28.
The bank, which was owned by private equity firm TPG, has $1.4 billion in assets.
WSJM’s Eric Davenport explains why investors should consider buying into the company in light of its troubles.
The Chicago Board of Trade said it is selling Wesley’s assets, a move that would give the company an infusion of cash, and put the financial industry on notice that Wesley is a troubled institution.
WSJO’s Sarah Ruggiero reports.
A Wesley spokesman said the bank is not in danger of being forced out of business.
The firm has $7 billion in cash and stock, and has assets in the $2 billion range, according to its most recent quarterly financial report.
WSFA’s Michael A. Homan reports.