Here Come the Peasants With Pitchforks

After seeing some thawing in key credit markets, Treasury may expand program

(NEWSER) - Treasury is considering using some of the $700 billion at its disposal to buy stakes in a range of financial companies beyond banks, the Wall Street Journal reports. The idea comes after seeing measured success in thawing credit markets by taking equity stakes in several banks. Treasury may also abandon its plan to buy troubled assets from banks at auction, instead purchasing those directly. More»

$250B bailout needed to restore faith, keep capital at home

(NEWSER) - The $250 billion plan to guarantee new bank debt and unlimited bank deposits in certain accounts isn’t just an option, Treasury Secretary Paulson told the chiefs of nine banks yesterday; it’s for the good of the country. The plan, the country’s response to similar European banking actions, is engineered to quash feats that US banks will default and keep capital from flowing overseas to safer banks, the New York Times reports. More»

(NEWSER) - The finance ministers of the world's economic leaders vowed to stem the financial bleeding in international markets today after stocks plummeted yet again, Reuters reports. Reacting to pleas from investors, the IMF, and several other countries, the G7 reps pledged "urgent and exceptional action" to free up credit and money markets. Meanwhile, Washington confirmed that it will use bailout money to purchase stakes in US banks, the Washington Post reports. More»

US must join UK's plan or face disaster: Krugman

(NEWSER) - Since the collapse of Lehman Brothers the financial crisis has gone from severe to terrifying, but the response of the United States and Europe has been "woefully inadequate," writes New York Times columnist Paul Krugman. We are now at a tipping point, and if world policymakers don't come up with a coordinated plan—this weekend—then we may well experience the "worst slump since the Great Depression." More»

(NEWSER) - The Treasury Department may take part ownership of many US banks in a bid to encourage lending and shore up confidence, the New York Times reports. Under the proposal, Treasury would give banks cash in exchange for ownership stakes. In theory, that would improve balance sheets and help banks lend to one another and to consumers. The danger is that it could feed the notion of failing banks, or punitive action, and further alarm shareholders. More»