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/business/7638096.stm

The article has changed 14 times. There is an RSS feed of changes available.

Version 6 Version 7
Bush says bail-out will be passed Bush says bail-out will be passed
(30 minutes later)
President George W Bush has said that legislators will "rise to the occasion" and pass the proposed $700bn (£380bn) Wall Street rescue plan.President George W Bush has said that legislators will "rise to the occasion" and pass the proposed $700bn (£380bn) Wall Street rescue plan.
He said disagreements remained as "the proposal is big and the reason it's big is because it's a big problem".He said disagreements remained as "the proposal is big and the reason it's big is because it's a big problem".
Senate Majority Leader Harry Reid, a Democrat, said lawmakers would stay in session until a deal was reached.Senate Majority Leader Harry Reid, a Democrat, said lawmakers would stay in session until a deal was reached.
But on Friday rebel Republicans were still unhappy at the plan to buy mortgage-backed assets from US banks.But on Friday rebel Republicans were still unhappy at the plan to buy mortgage-backed assets from US banks.
'Harmful''Harmful'
"There are disagreements over aspects of a rescue plan," Mr Bush admitted, adding "but there is no disagreement that something substantial must be done.""There are disagreements over aspects of a rescue plan," Mr Bush admitted, adding "but there is no disagreement that something substantial must be done."
Republicans in the House are going to continue, they say, to try to resist this plan The BBC's Adam Brooks, Washington Rescue deal stalemateRescue deal sticking pointMore cash injected into banks Senate Majority Leader Harry Reid, a Democrat, agreed, saying on Friday: "We're going to get this done and stay in session as long as it takes to get it done."Republicans in the House are going to continue, they say, to try to resist this plan The BBC's Adam Brooks, Washington Rescue deal stalemateRescue deal sticking pointMore cash injected into banks Senate Majority Leader Harry Reid, a Democrat, agreed, saying on Friday: "We're going to get this done and stay in session as long as it takes to get it done."
He also said that "the insertion of presidential politics has not been helpful, it's been harmful" adding that Republican presidential candidate John McCain had not made his position on the financial rescue package clear.He also said that "the insertion of presidential politics has not been helpful, it's been harmful" adding that Republican presidential candidate John McCain had not made his position on the financial rescue package clear.
Mr McCain, who had announced that he not take part in a presidential debate with rival Barack Obama until a bail-out plan was agreed, said on Friday that he would fly to Mississippi for the debate later.Mr McCain, who had announced that he not take part in a presidential debate with rival Barack Obama until a bail-out plan was agreed, said on Friday that he would fly to Mississippi for the debate later.
Mr Bush's public backing for a deal did not ease nervousness on Wall Street, with stocks fluctuating, and each of the three major indexes being slightly behind at 1330 in New York.Mr Bush's public backing for a deal did not ease nervousness on Wall Street, with stocks fluctuating, and each of the three major indexes being slightly behind at 1330 in New York.
ResistanceResistance
Senators Harry Reid and Chris Dodd lay out their termsSenators Harry Reid and Chris Dodd lay out their terms
Republican critics of the bail-out plan are worried about both its cost and how it would involve the government in the financial sector.Republican critics of the bail-out plan are worried about both its cost and how it would involve the government in the financial sector.
The BBC's Adam Brookes in Washington predicted a tough day of negotiations ahead.The BBC's Adam Brookes in Washington predicted a tough day of negotiations ahead.
"Republicans in the House are going to continue, they say, to try to resist this plan," he said."Republicans in the House are going to continue, they say, to try to resist this plan," he said.
HAVE YOUR SAYThis is not permanent problem-solving but rather a temporary fixAsmarlak, Houston, TexasSend us your commentsHAVE YOUR SAYThis is not permanent problem-solving but rather a temporary fixAsmarlak, Houston, TexasSend us your comments
"They are also trying to convince Senator John McCain, the presidential contender, to jump in their direction.""They are also trying to convince Senator John McCain, the presidential contender, to jump in their direction."
Instead, the rebels want a government-backed insurance policy to cover the huge amounts of bad debt built up by US banks.Instead, the rebels want a government-backed insurance policy to cover the huge amounts of bad debt built up by US banks.
House Republican leader John Boehner said "we need to act quickly andprotect the American taxpayer first and foremost".
Democrats meanwhile want to secure limits to payments for executives of failed banks and ensure there is adequate help for struggling US homeowners.Democrats meanwhile want to secure limits to payments for executives of failed banks and ensure there is adequate help for struggling US homeowners.
ImpactImpact
Financial markets are gummed up because banks do not know exactly how much bad debt they hold and are therefore reluctant to lend to businesses, consumers and each other.Financial markets are gummed up because banks do not know exactly how much bad debt they hold and are therefore reluctant to lend to businesses, consumers and each other.
The fall-out of this credit crunch continues to have a huge impact:
  • The United States suffered its largest bank failure yet, when regulators moved in to close down Washington Mutual and then sold it to US rival JP Morgan Chase for $1.9bn
  • In a co-ordinated move the European Central Bank, the US Federal Reserve, the Bank of England, Bank of Japan and the Swiss National Bank announced new short-term loans to the banking sector worth tens of billions of dollars
  • Banks continued to cut costs, with UK banking giant HSBC saying it would axe 1,100 jobs
  • Shares in UK bank Bradford & Bingley fell another 20% to 17 pence before recovering slightly
The fall-out of this credit crunch continues to have a huge impact:
  • The United States suffered its largest bank failure yet, when regulators moved in to close down Washington Mutual and then sold it to US rival JP Morgan Chase for $1.9bn
  • In a co-ordinated move the European Central Bank, the US Federal Reserve, the Bank of England, Bank of Japan and the Swiss National Bank announced new short-term loans to the banking sector worth tens of billions of dollars
  • Banks continued to cut costs, with UK banking giant HSBC saying it would axe 1,100 jobs
  • Shares in UK bank Bradford & Bingley fell another 20% to 17 pence before recovering slightly
'Full-throated discussion''Full-throated discussion'
Talks to agree the huge bail-out of the financial industry ended in a "shouting match" on Thursday.Talks to agree the huge bail-out of the financial industry ended in a "shouting match" on Thursday.
After several hours of discussions with President Bush, a group of Republican members of Congress blocked the government plan, which would have seen the government buy bad debts from US banks to prevent more of them collapsing.After several hours of discussions with President Bush, a group of Republican members of Congress blocked the government plan, which would have seen the government buy bad debts from US banks to prevent more of them collapsing.
The intense discussions reportedly saw US Treasury Secretary Henry Paulson literally down on one knee, begging Ms Pelosi to help push through the bail-out package.The intense discussions reportedly saw US Treasury Secretary Henry Paulson literally down on one knee, begging Ms Pelosi to help push through the bail-out package.
However, the agreement unravelled when a group of Republican legislators objected to the principle of the plan.However, the agreement unravelled when a group of Republican legislators objected to the principle of the plan.
The talks at the White House, led by Mr Paulson and US President George W Bush, then descended into what one participant described as "a full-throated discussion".The talks at the White House, led by Mr Paulson and US President George W Bush, then descended into what one participant described as "a full-throated discussion".
Do you work in the banking or finance industry? Contribute to our Experts Forum here.Do you work in the banking or finance industry? Contribute to our Experts Forum here.