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'Big three' defend handling of crisis; Banks bail-out 'exactly right thing to do'.(News)

Article from: The Journal (Newcastle, England) Article date: November 04, 2008

Byline: Paul Russell

THE UK's three most senior financial figures yesterday defended their handling of the worst crisis to hit the banking system in almost a century.

Chancellor Alistair Darling, Bank of England Governor Mervyn King and Lord Turner, the chairman of the Financial Services Authority, faced questions from the Treasury Select Committee - picked from around 5,000 submissions from the public - for the first time.

Mr King said the pounds 400bn bail-out of the banking system - including pounds 37bn in new capital for three ailing institutions - was "exactly ...

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Bailout? Detroit Needs a Brain

Posted Nov 12, 08 10:28 AM CST in Politics Business Opinion 

Bailout? Detroit Needs a Brain
Source: AP Photo

(Newser) – The appalling prospect of a $25 billion bailout for Detroit automakers—“ an industry that became brain dead”—has Thomas Friedman, writing in the New York Times, outraged. He blasts “a very un-innovative business culture, visionless management, and overly generous labor contracts” for the mess, and heaps blame on Michigan’s congressional delegation, for voting “however the Detroit automakers and unions instructed them to vote.”

The Big Three got away with ignoring pesky fuel efficiency standards, environmental concerns, and global competition that might have forced them to adapt. If US taxpayers must help them, fire all their executives. “Call Steve Jobs, who doesn’t need to be bribed to do innovation,” Friedman writes, “and ask him if he’d like to run a car company.”

Source: New York Times
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ANALYSIS

Why Asian Automakers Don't Want Detroit to Fail

Big Three bankruptcy would disrupt supply chain, further sour US economy

(Newser) - As Detroit’s Big Three await word on the fate of their much-needed bailout, an unlikely group of supporters has assembled in their corner: foreign automakers. A collapse of General Motors, Ford, or Chrysler would devastate overseas manufacturers as well, CNNMoney reports, spreading bankruptcy to suppliers around the globe and forcing dealer networks worldwide to replace failed brands. More »

More about:  Financial Crisis bailout auto industry General Motors Detroit Ford Chrysler Toyota Big Three Honda Nissan Tata Motors

OPINION

No More Bailouts, Detroit or Otherwise: Learn the Lesson

Yes, there will be pain, but saving irresponsible companies bad for US future

(Newser) - Given the failure of the Wall Street bailout, to think doing the same for Detroit would help the auto industry and America in the long run is fantasy, Kevin O’Brien writes in the Cleveland Plain Dealer . The only thing that will help is to feel the pain. “No more bailouts,” O’Brien writes. “Not for private industries. Not for states. Not for cities. Not for school districts.” More »

Auto Bailout Has Detractors Back in Michigan, Too

Some don't feel sorry for 'high-on-the-hog' Detroit giants

(Newser) - The auto industry has driven Michigan’s economy since Henry Ford set up shop, but not all residents are sympathetic to Detroit’s plight, the New York Times reports. Unemployment runs high, and some wonder where the rescue was when their livelihoods were on the line. “The car companies saw the banks getting a bailout and said, ‘Oh, let’s go!’” one resident grumbles. More »


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