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Now Wall Street may shun $700bn bail-out
Posted By admin On October 6, 2008 @ 3:52 am In Featured Stories | Comments Disabled
London Guardian 
Monday, Oct 6, 2008
Fears are mounting that many Wall Street banks and financial firms will refuse to participate in the US government’s $700bn bail-out package, leaving global markets and world economies in a perilous state for months to come.
‘There is a growing feeling that banks … might instead decide to tough it out,’ said Thomas Caldwell, chairman and CEO of Caldwell Financial, a $1bn-plus fund manager.
For the past two weeks all eyes in the market have been focused on US Congress and its attempts to pass Treasury Secretary Henry Paulson’s bail-out package – a bill to allow the US government to buy up to $700bn of toxic mortgage-related assets from American banks, which would in theory free the credit markets and set the gears of global commerce spinning once more.
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Last Monday, after the bill was thrown out by the House of Representatives, more than $1 trillion was wiped off the value of US stocks as the market was gripped by panic. The bill was passed on Friday afternoon, however, after the inclusion of $149bn of tax breaks and strict rules for participating banks.
But Wall Street analysts, believe the addition of so many terms to the bill might deter potential participants.
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URLs in this post:
 London Guardian : http://www.guardian.co.uk/business/2008/oct/05/wall.street.bailout
 House GOP: We’ll Oppose Any Bailout of Wall Street: http://www.prisonplanet.com/house-gop-well-oppose-any-bailout-of-wall-street.html
 Wall Street fall spreads to Asian markets: http://www.prisonplanet.com/wall-street-fall-spreads-to-asian-markets.html
 Wall Street banks in $70bn staff payout: http://www.prisonplanet.com/wall-street-banks-in-70bn-staff-payout.html
 Congress Rejects Bail-Out Plan: http://www.prisonplanet.com/congress-rejects-bail-out-plan.html
 Wall Street profits from trades with Fed: http://www.prisonplanet.com/wall-street-profits-from-trades-with-fed.html
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