This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/7624482.stm
The article has changed 14 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| US pledges financial rescue plan | US pledges financial rescue plan |
| (20 minutes later) | |
| US officials say they will hammer out a "comprehensive" plan to ease what has become a global financial crisis. | |
| US Treasury Secretary Henry Paulson said after meeting members of Congress that legislation would be required to rid US banks of their bad assets. | |
| He said this was at the heart of the rescue plan, which will be worked out over the weekend. | He said this was at the heart of the rescue plan, which will be worked out over the weekend. |
| US stocks had earlier surged on news of the rescue plan, with the Dow Jones up 3.86%, to 11,019.69. | US stocks had earlier surged on news of the rescue plan, with the Dow Jones up 3.86%, to 11,019.69. |
| Japan's Nikkei echoed the rally, with a 1.24% rise at Friday's opening. | Japan's Nikkei echoed the rally, with a 1.24% rise at Friday's opening. |
| World markets have been volatile in the wake of huge upheavals among banks. | World markets have been volatile in the wake of huge upheavals among banks. |
| Since the start of the week, Lehman Brothers has collapsed, the Federal Reserve has bailed out insurance giant AIG, Merrill Lynch has been acquired by Bank of America and in the UK, Lloyds TSB has acquired HBOS. | Since the start of the week, Lehman Brothers has collapsed, the Federal Reserve has bailed out insurance giant AIG, Merrill Lynch has been acquired by Bank of America and in the UK, Lloyds TSB has acquired HBOS. |
| Housing slump | |
| Mr Paulson and Federal Reserve Chairman Ben Bernanke briefed Congress leaders on the plans they were considering. | Mr Paulson and Federal Reserve Chairman Ben Bernanke briefed Congress leaders on the plans they were considering. |
| "We talked about a comprehensive approach that will require legislation to deal with illiquid assets on financial institutions' balance sheets," Mr Paulson said. | "We talked about a comprehensive approach that will require legislation to deal with illiquid assets on financial institutions' balance sheets," Mr Paulson said. |
| He said the root cause of the stress in the markets was the "real estate correction" and the "price declines in real estate". | |
| Democrat Senate Majority leader Harry Reid said he expected to have a proposal in a matter of hours, rather than days. | Democrat Senate Majority leader Harry Reid said he expected to have a proposal in a matter of hours, rather than days. |
| The BBC's Jane O'Brien in Washington says the heart of the problem is the bad debt caused by high-risk mortgages that sparked the housing slump and subsequent credit crunch. | |
| There is speculation that one plan being discussed involves a government agency that would take on the debt, our correspondent says. | |
| Another possibility is legislation that would force lenders to renegotiate mortgages that homeowners are having difficulty paying, she adds. |