WASHINGTON (Reuters) - The International Monetary Fund warned on Saturday that debt-ridden banks were pushing the global financial system to the brink of meltdown and rich nations had so far failed to restore confidence. The United States appealed for patience as world leaders raced to stabilize financial markets and avert the deepest global recession in decades, but the IMF said more steps would be needed in the coming months. "Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," IMF chief Dominique Strauss-Kahn said.
WASHINGTON (Reuters) - The International Monetary Fund warned on Saturday that debt-ridden banks were pushing the global financial system to the brink of meltdown and rich nations had so far failed to restore confidence.
The United States appealed for patience as world leaders raced to stabilize financial markets and avert the deepest global recession in decades, but the IMF said more steps would be needed in the coming months.
"Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," IMF chief Dominique Strauss-Kahn said.
In the meantime, break-out the hot dogs and marshmallows!
Oct. 11 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson indicated that pumping government funds into banks is a priority and said financial markets will remain volatile. ``We see the need -- a clear, present need -- to raise capital,'' Paulson said yesterday at a press conference after a meeting in Washington of finance ministers and central bankers from Group of Seven countries. The purchases of stock, the newest part of a rescue plan engineered by Paulson, would be aimed at sustaining banks and other financial institutions through the worst credit crisis in seven decades. The U.S. Congress last week passed legislation allowing the Treasury secretary to spend as much as $700 billion to buy mortgage securities and other troubled assets and to purchase equity in banks. Paulson declined yesterday to give a timetable or details about the purchases.
Oct. 11 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson indicated that pumping government funds into banks is a priority and said financial markets will remain volatile.
``We see the need -- a clear, present need -- to raise capital,'' Paulson said yesterday at a press conference after a meeting in Washington of finance ministers and central bankers from Group of Seven countries.
The purchases of stock, the newest part of a rescue plan engineered by Paulson, would be aimed at sustaining banks and other financial institutions through the worst credit crisis in seven decades.
The U.S. Congress last week passed legislation allowing the Treasury secretary to spend as much as $700 billion to buy mortgage securities and other troubled assets and to purchase equity in banks. Paulson declined yesterday to give a timetable or details about the purchases.
BOSTON, Oct 11 (IPS) - The George W. Bush administration announced Friday evening it would buy shares in troubled U.S. banks, a move that upstages its own rigid, free-market ideology, and answers calls for the action by European leaders.Until now, the U.S. has resisted taking the action even though doing so would be a prudent plan for stabilising financial institutions, said Thomas Palley, founder of Economics for Democratic and Open Societies. "What you are really seeing is how ideology can get in the way of good policy. Republicans have been averse to gaining an equity stake in the banks," Palley told IPS. U.S. Treasury Secretary Henry Paulson made the announcement following a meeting with the finance ministers of the G7 richest nations, who said "urgent and exceptional action" is needed. The governments issued a brief, five-point plan for stabilising markets, including allowing banks to raise capital from public and private sources as necessary. "It is aimed at recapitalising the financial institutions in the U.S.," Paulson said. "We want to do this as soon as possible but we want it to be right and to be effective."
Two weeks after persuading Congress to let it spend $700 billion to buy distressed securities tied to mortgages, the Bush administration has put that idea aside in favor of a new approach that would have the government inject capital directly into the nation's banks -- in effect, partially nationalizing the industry. As recently as Sept. 23, senior officials had publicly derided proposals by Democrats to have the government take ownership stakes in banks. The Treasury Department's surprising turnaround on the issue of buying stock in banks, which has now become its primary focus, has raised questions about whether the administration squandered valuable time in trying to sell Congress on a plan that officials had failed to think through in advance. It has also raised questions about whether the administration's deep philosophical aversion to government ownership in private companies hindered its ability to look at all options for stabilizing the markets.Some experts also contend that Treasury's decision last month to not use taxpayer money to save Lehman Brothers worsened the panic that quickly metastasized into an international crisis.
Two weeks after persuading Congress to let it spend $700 billion to buy distressed securities tied to mortgages, the Bush administration has put that idea aside in favor of a new approach that would have the government inject capital directly into the nation's banks -- in effect, partially nationalizing the industry.
As recently as Sept. 23, senior officials had publicly derided proposals by Democrats to have the government take ownership stakes in banks.
The Treasury Department's surprising turnaround on the issue of buying stock in banks, which has now become its primary focus, has raised questions about whether the administration squandered valuable time in trying to sell Congress on a plan that officials had failed to think through in advance.
It has also raised questions about whether the administration's deep philosophical aversion to government ownership in private companies hindered its ability to look at all options for stabilizing the markets.
Some experts also contend that Treasury's decision last month to not use taxpayer money to save Lehman Brothers worsened the panic that quickly metastasized into an international crisis.
This is something that was not part of the Paulson plan (remember the 2 and a half pages?). Then, in what should be called the Dodd plan, Paulson kept saying he did not want it. Then when he had it anyway, he kept saying he didn't want to use it for two weeks.
How can they say it's part of a plan engineered by Paulson? That must be Neoliberal press Bullshit technology or something. "Few can believe that suffering, especially by others, is in vain. - Galbraith"
Wachovia Corp. says securing shareholder approval of its pending acquisition by Wells Fargo & Co. â€oewould seriously jeopardize the financial viability of Wachovia.â€� The audit committee of the companyâ€TMs board, citing an exception in the New York Stock Exchangeâ€TMs policy for such a situation, has approved Wachoviaâ€TMs decision not to seek shareholder approval for the deal. And the NYSE has accepted Wachoviaâ€TMs application of the exception.
Wachovia Corp. says securing shareholder approval of its pending acquisition by Wells Fargo & Co. â€oewould seriously jeopardize the financial viability of Wachovia.â€�
The audit committee of the companyâ€TMs board, citing an exception in the New York Stock Exchangeâ€TMs policy for such a situation, has approved Wachoviaâ€TMs decision not to seek shareholder approval for the deal. And the NYSE has accepted Wachoviaâ€TMs application of the exception.
Thus the need for large for large long term owners, like family dynasties.
Because of the ineffable logic of anglosaxon capitalism, such owners does NOT result in the shares being traded with a premium, but with a discount. Peak oil is not an energy crisis. It is a liquid fuel crisis.
DETROIT -- Before General Motors began exploring a possible merger with Chrysler -- talks that first came to light on Friday -- G.M. proposed a similar deal with its other cross-town rival, the Ford Motor Company, two people with knowledge of the talks said Saturday. G.M. executives approached Ford about a possible merger in July, but Ford rejected the idea and ended the discussions last month, these people said.After Ford decided to remain independent amid an increasingly difficult auto market, G.M. turned its attention to Chrysler. For the last month, it has been in preliminary merger talks with Chrysler's owner, the private-equity firm Cerberus Capital Management.A deal is not certain, but people with knowledge of the talks described the chances of it happening as "50-50."
DETROIT -- Before General Motors began exploring a possible merger with Chrysler -- talks that first came to light on Friday -- G.M. proposed a similar deal with its other cross-town rival, the Ford Motor Company, two people with knowledge of the talks said Saturday.
G.M. executives approached Ford about a possible merger in July, but Ford rejected the idea and ended the discussions last month, these people said.
After Ford decided to remain independent amid an increasingly difficult auto market, G.M. turned its attention to Chrysler. For the last month, it has been in preliminary merger talks with Chrysler's owner, the private-equity firm Cerberus Capital Management.
A deal is not certain, but people with knowledge of the talks described the chances of it happening as "50-50."
A commentator at the note on the proposed merger at Matthew Yglesias' blog says:
The ramifications of the merger would be enormous in the global auto industry. G.M. and Chrysler together would control more than 35 percent of the United States vehicle market, and be by far the dominant producer of pickup trucks, sport utility vehicles and minivans. Awesome. Together with their market shares in whale oil and harness-making, that should really . . . fail.
Awesome. Together with their market shares in whale oil and harness-making, that should really . . . fail.
THE government will tomorrow launch the biggest rescue of Britain's high-street banks when the UK's four biggest institutions ask for a £35 billion financial lifeline. The unprecedented move will make the government the biggest shareholder in at least two banks. The Royal Bank of Scot-land (RBS), which has seen its market value fall to under £12 billion, is to ask the government to underwrite a £15 billion cash call. HBOS, which is Britain's biggest provider of mortgages, is requesting up to £10 billion. Lloyds TSB, which is in the process of acquiring HBOS, and Barclays require £7 billion and £3 billion. The scale of the fundraising could lead to trading at the London stock market being suspended. This would be to give time for the market to digest the scale of the information and its impact.
THE government will tomorrow launch the biggest rescue of Britain's high-street banks when the UK's four biggest institutions ask for a £35 billion financial lifeline.
The unprecedented move will make the government the biggest shareholder in at least two banks. The Royal Bank of Scot-land (RBS), which has seen its market value fall to under £12 billion, is to ask the government to underwrite a £15 billion cash call. HBOS, which is Britain's biggest provider of mortgages, is requesting up to £10 billion. Lloyds TSB, which is in the process of acquiring HBOS, and Barclays require £7 billion and £3 billion.
The scale of the fundraising could lead to trading at the London stock market being suspended. This would be to give time for the market to digest the scale of the information and its impact.
Gordon Brown invoked the spirit of the Blitz as he promised Britain would "lead the way" through the global financial crisis.With EU leaders preparing for an emergency summit in Paris, the Prime Minister urged the world to follow the UK's example to tackle the "extraordinary" turmoil on markets.He also echoed a warning from US President George Bush that countries must not "turn against each other" or seek isolation amid the chaos.Writing in the Sunday Mirror, Mr Brown insisted: "No country - not even the biggest - can make it just on their own at a time like this. We are all in it together and have to work to solve it together."He said he knew people were "worried", but employed language reminiscent of Churchill to praise the resilience of the British public."I've seen in the cities and towns I've visited a calm, determined British spirit; that, while this is a world financial crisis that has started from America, Britain will lead the way in pulling through."And I know that we will come together as a country and emerge a fairer and more successful nation than ever before. Together, we can win the fight for Britain's future."
Gordon Brown invoked the spirit of the Blitz as he promised Britain would "lead the way" through the global financial crisis.
With EU leaders preparing for an emergency summit in Paris, the Prime Minister urged the world to follow the UK's example to tackle the "extraordinary" turmoil on markets.
He also echoed a warning from US President George Bush that countries must not "turn against each other" or seek isolation amid the chaos.
Writing in the Sunday Mirror, Mr Brown insisted: "No country - not even the biggest - can make it just on their own at a time like this. We are all in it together and have to work to solve it together."
He said he knew people were "worried", but employed language reminiscent of Churchill to praise the resilience of the British public.
"I've seen in the cities and towns I've visited a calm, determined British spirit; that, while this is a world financial crisis that has started from America, Britain will lead the way in pulling through.
"And I know that we will come together as a country and emerge a fairer and more successful nation than ever before. Together, we can win the fight for Britain's future."
In the long run we are all dead But in the short run some of us can't get buried because of the credit crunch: The spectre of the Winter of Discontent threatened to return to haunt Labour last night after funeral directors revealed that the burial of `hundreds' of bodies is being delayed for financial reasons. In a bleak new sign of the growing economic crisis, hard-up families are having to wait more than two months before receiving Government money for funerals. Organisations representing undertakers accused the Government of putting them in an `impossible' position by dragging their feet over burial costs for poor families. Previously, undertakers would pay for the cost of funerals and wait to be reimbursed by the State, but the lack of credit in the banking system means many firms can no longer afford to do so.
But in the short run some of us can't get buried because of the credit crunch:
The spectre of the Winter of Discontent threatened to return to haunt Labour last night after funeral directors revealed that the burial of `hundreds' of bodies is being delayed for financial reasons. In a bleak new sign of the growing economic crisis, hard-up families are having to wait more than two months before receiving Government money for funerals. Organisations representing undertakers accused the Government of putting them in an `impossible' position by dragging their feet over burial costs for poor families. Previously, undertakers would pay for the cost of funerals and wait to be reimbursed by the State, but the lack of credit in the banking system means many firms can no longer afford to do so.
The spectre of the Winter of Discontent threatened to return to haunt Labour last night after funeral directors revealed that the burial of `hundreds' of bodies is being delayed for financial reasons.
In a bleak new sign of the growing economic crisis, hard-up families are having to wait more than two months before receiving Government money for funerals.
Organisations representing undertakers accused the Government of putting them in an `impossible' position by dragging their feet over burial costs for poor families.
Previously, undertakers would pay for the cost of funerals and wait to be reimbursed by the State, but the lack of credit in the banking system means many firms can no longer afford to do so.
