The Bush administration will announce a plan to rescue frozen credit markets that includes spending about half of a total of $250 billion for preferred shares of nine major banks, people briefed on the matter said.
The companies are Citigroup Inc., Wells Fargo & Co., JPMorgan Chase & Co., Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley, State Street Corp., and Bank of New York Mellon Corp., the people said. One of the people also said Merrill Lynch & Co. will receive an investment.
U.S. Treasury Said to Invest in Nine Major U.S. Banks
Treasury to Invest in `Healthy' Banks, Kashkari Says
Neel Kashkari, the U.S. Treasury official overseeing the $700 billion rescue of the financial system, said government equity injections will be aimed at ``healthy'' firms.
``We are designing a standardized program to purchase equity in a broad array of financial institutions,'' Kashkari, who heads the department's Troubled Asset Relief Program, said in a speech in Washington. ``The equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions.''
U.S. officials are hurrying to address frozen credit markets that led France, Germany, Spain, the Netherlands and Austria to agree to commit $1.8 trillion to guarantee interbank loans and take equity stakes in banks. Buying shares of financial institutions has become the latest focus of Treasury Secretary Henry Paulson's rescue plan.
``While the U.S. tends to shy away from nationalizing or even partially nationalizing its financial institutions, it would appear that it has no choice but to follow suit,'' Win Thin, a senior currency analyst with Brown Brothers Harriman & Co. in New York, said in a research note today.
TVNL Comment: As predicted...this is a takeover, not a rescue. This is a wealth undistribution.
Man jailed for brown lawn gets help from neighbors
It was a story in the St. Petersburg Times about a 66-year-old grandfather, Joseph Prudente, who was jailed without bail on Friday because his lawn was brown. For nearly a year, he ignored letters from his Beacon Woods homeowners' association and a court order because, he said, he barely had the money to pay his mortgage. He was trying to keep his house and didn't care about the lawn.
TVNL Comment: What kind of cops would make this arrest and what kind of judge would declare no bail? What country is this? How much you want to bet that the cops, the people who complained and the judge call themseves Christians?
Duncan Hunter's earmarks benefit his son
Defense contractors who received millions of dollars in government earmarks arranged by Rep. Duncan Hunter are now helping to fill the campaign coffers of his son, who is seeking the San Diego-area congressional seat being vacated by his father after 28 years, records show.
Officials at several companies that benefited from the pet project spending requests that the veteran Republican lawmaker inserted into often-unrelated legislation have contributed more than $30,000 to the front-running campaign of his son, Duncan D. Hunter, according to Federal Election Commission (FEC) records.
Private sector loans, not Fannie or Freddie, triggered crisis
As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.
Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.
Iraqi government fuels 'war for oil' theories by putting reserves up for biggest ever sale
The biggest ever sale of oil assets will take place today, when the Iraqi government puts 40bn barrels of recoverable reserves up for offer in London. BP, Shell and ExxonMobil are all expected to attend a meeting at the Park Lane Hotel in Mayfair with the Iraqi oil minister, Hussein al-Shahristani.
Access is being given to eight fields, representing about 40% of the Middle Eastern nation's reserves, at a time when the country remains under occupation by US and British forces.
More...
Access is being given to eight fields, representing about 40% of the Middle Eastern nation's reserves, at a time when the country remains under occupation by US and British forces.
More...
Guantanamo prosecutor who quit had 'grave misgivings' about fairness
Darrel J. Vandeveld was in despair. The hard-nosed lieutenant colonel in the Army Reserve, a self-described conformist praised by his superiors for his bravery in Iraq, had lost faith in the Guantanamo Bay war crimes tribunals in which he was a prosecutor.
GM crops have fallen into the wrong hands
Then you list ways that GM crops could alleviate hunger and malnutrition. Yes, in the hands of genuinely neutral scientists, they probably would. But GM is firmly in the hands of the type of people who gave us tobacco lies, asbestos lies and weapons-of-mass destruction lies - the type who sought to create wealth by genetically modifying the banks. Should we trust them when they no longer trust each other?
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