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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

James Doran,
London Guardian [1]
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.

(Article continues below)

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.

Full article here [1]


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URLs in this post:

[1] London Guardian : http://www.guardian.co.uk/business/2008/oct/05/wall.street.bailout

[2] House GOP: We’ll Oppose Any Bailout of Wall Street: http://www.prisonplanet.com/house-gop-well-oppose-any-bailout-of-wall-street.html

[3] Wall Street fall spreads to Asian markets: http://www.prisonplanet.com/wall-street-fall-spreads-to-asian-markets.html

[4] Wall Street banks in $70bn staff payout: http://www.prisonplanet.com/wall-street-banks-in-70bn-staff-payout.html

[5] Congress Rejects Bail-Out Plan: http://www.prisonplanet.com/congress-rejects-bail-out-plan.html

[6] Wall Street profits from trades with Fed: http://www.prisonplanet.com/wall-street-profits-from-trades-with-fed.html

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