Fed’s Bear Stearns Portfolio Loses $2B ·
The Federal Reserve disclosed that the value of the assets it took from Bear Stearns in March lost more than $2 billion during the third quarter, fueling concern that the central bank's rescue will end up costing taxpayers. The total portfolio value declined to $26.8 billion. (American Banker)
October 24, 2008
Bailout
$1 Trillion Federal Debt Looms ·
Incumbents and candidates in both parties are promising tax breaks, bailouts, subsidies, and other proposals that could push the U.S. federal deficit to $1 trillion this year, the biggest level since the war-economy of 1945. (Washington Post) Some economists fear it could undermine economic security for years to come; others argue the spending is a necessary stimulus.
Pelosi Concerned Bailout Permits Conflicts Of Interest ·
Sen. Nancy Pelosi expressed concern that Treasury's program to buy up to $700 billion in troubled assets appears to permit participating financial institutions with a "clear conflict of interest" because some of them may also be eligible to help run the program. The U.S. Treasury is currently soliciting proposals for the "infrasctructure" services. (CQ)
ANALYSIS Stiglitz: Reversal of Fortune ·
Describing how ideology, special-interest pressure, populist politics, and incompetence have left the U.S. economy on life support, Joseph Stiglitz puts forth a plan to reverse "regain America’s economic sanity." (Vanity Fair)
Bailout Bill Passes, Signed Into Law ·
President George W. Bush signed into law the biggest government intervention in the markets since the Great Depression, but he warned that the effects of the rescue package may not be felt for a while. (WSJ)
Earmarks In Bailout Bill May Attract Votes In House ·
The Senate's financial bill has a better chance of passage because it has millions of dollars of tax breaks that may have little to do with the financial plan, but will prove crucial in luring House members to vote. (San Francisco Chronicle)
House Plans Second Vote On $700 Billion Bailout ·
The $700 billion financial rescue package is getting a second chance in the House as lawmakers prepare for a midday vote, optimistic that they can shore up more support for the bill than they did Monday. (Washington Post)
Bailout Gains Votes In House ·
At least three members of the House who rejected the bailout package have publicly said that they will vote yes when the House takes up the measure again on Friday. (The Hill)
Bush Presses House To Pass Rescue Bill ·
The day after the Senate approved the bailout plan, President George W. Bush urged the House to "get this bill passed so we can get about the business of restoring confidence." (NYT)
Support For Bailout Steady Among House Dems ·
House Majority Leader Steny Hoyer (D-Md.) expressed confidence that the Democrats will hold on to their 141 votes from Monday's bailout fight, after House Democrats told rank-and-file members to inform the Majority Whip's office how they are going to vote. (Roll Call)
McCain Outraged Over Bailout Earmarks ·
Sen. John McCain said he was outraged at the earmarks added to garner support for the Senate bailout package, a 400-page bill for which he voted last night. (Politico)
Chinese PM Says Markets Need Guidance ·
Stressing his government's regulation policy, Chinese Primse Minister Wen Jiabao quoted Adam Smith and advised American lawmakers to "apply not only the visible hand but also the invisible hand" to stabilize the markets. (CNN)
Senate Approves Financial Bailout ·
The Senate approved the financial rescue plan by a vote of 74 to 25. Sens. John McCain, Barack Obama and Joe Biden voted for the bill that will be sent to the House for a vote on Friday. (U.S. Senate)
Bush, Paulson Lobbying Congress, Industry ·
The Bush administration hopes private meetings with House members will do what public pleas did not, while Treasury Secretary Henry Paulson meets with lobbyists and representatives of mid-sized banks to shore up support for the bailout plan. (Bloomberg)
GOP House Members Crafting Alternative Plan ·
A group of House Republicans, opposed to the federal government taking a large role in the markets, are crafting an alternative proposal to the plan put forward by Treasury Secretary Henry Paulson. (CNBC)