British and European banks could be excluded from Washington's $700 billion (£382 billion) bailout amid a backlash over the financial burden on the US taxpayer. While Hank Paulson, the US Treasury Secretary, wants to allow foreign banks to benefit from the scheme, some Democrats in Washington and others on Wall Street are angry that taxpayer funds may be used to prop up overseas businesses. Uncertainty for banks such as UBS, the Swiss financial group, Deutsche Bank, the biggest bank in Germany, and HSBC comes two days after Mr Paulson and President Bush urged lawmakers in Washington to push through the largest financial intervention package since the Great Depression to avoid the meltdown of America's banking system. As Mr Paulson held meetings with Republicans and Democrats over the weekend to persuade them to nod through the package, dissent broke out over the terms. Chris Dodd, the Democratic chairman of the Senate Committee on Banking, Housing and Urban Affairs, acknowledged yesterday that the crisis demanded quick action, but made it clear that Democrats would not rubber-stamp the Administration's proposal. It is believed that bankers from Deutsche Bank and UBS approached America's central bank and other Washington agencies at the weekend to seek assurances they would be included in the bailout.
British and European banks could be excluded from Washington's $700 billion (£382 billion) bailout amid a backlash over the financial burden on the US taxpayer.
While Hank Paulson, the US Treasury Secretary, wants to allow foreign banks to benefit from the scheme, some Democrats in Washington and others on Wall Street are angry that taxpayer funds may be used to prop up overseas businesses.
Uncertainty for banks such as UBS, the Swiss financial group, Deutsche Bank, the biggest bank in Germany, and HSBC comes two days after Mr Paulson and President Bush urged lawmakers in Washington to push through the largest financial intervention package since the Great Depression to avoid the meltdown of America's banking system.
As Mr Paulson held meetings with Republicans and Democrats over the weekend to persuade them to nod through the package, dissent broke out over the terms. Chris Dodd, the Democratic chairman of the Senate Committee on Banking, Housing and Urban Affairs, acknowledged yesterday that the crisis demanded quick action, but made it clear that Democrats would not rubber-stamp the Administration's proposal. It is believed that bankers from Deutsche Bank and UBS approached America's central bank and other Washington agencies at the weekend to seek assurances they would be included in the bailout.
