US bailout halted in Congress
Daily news headlines
Treasury secretary Paulson’s $700 bailout fails to pass
WASHINGTON, DC – US Treasury secretary Henry Paulson might need to get down on his knees again, after the US House of Representatives blocked his $700 billion bailout plan. The endorsements of Paulson, President George Bush and Federal Reserve governor Ben Bernanke did not count for enough, as the deal to buy out Wall Street’s toxic mortgage assets was voted down 228 to 205 yesterday.
The bill has the majority of Democrats in support (141:94), but the majority of Republicans (131:67) voted to kill the $700 billion federal intervention scheme, under which Treasury would have widespread freedom to buy billions of illiquid and low-valued US mortgage assets.
Paulson had already begged Democrat house leader Nancy Pelosi to help him limit opposition to the Treasury plan. Pelosi replied that it was Paulson’s fellow Republicans that were scuppering the scheme.
The failure means Paulson will have to go back to the drawing board, and markets on Wall Street and London fell considerably. New York’s Dow Jones fell 7% and London’s FTSE100 index of leading shares recording its greatest reduction of prices in three years.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Banks will not be frowned upon for discount window borrowing – Fed official
Risk Live: more banks have completed paperwork to access Fed lending facility than a year ago
Capital One puts OCC’s tough stance on mergers to the test
Proposed Discover deal should be approved but will go under the microscope, ex-regulators say
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
EU banks fear green asset ratios paint an unfair picture
Industry lobbyist clashes with lawmaker over usefulness of new sustainability disclosure
EU watchdogs to launch prop trader capital review in April
Prop traders say bank-style IFR rules are driving them out, but doubt EBA will suggest changes
Investors say new SEC disclosures may sit on shelf
Advisory committee questions value of rule 605 changes, even for retail investors
CFTC hears ‘call to action’ from swaps end-users on Basel III
Commissioner Pham mulls engaging with prudential regulators over capital hit on clearing
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high