European, Asian Markets Edge Up After Dive

Monetary fund chief pressures Congress to pass bailout, Europe to make plans

(NEWSER) - The US must act swiftly to avoid economic meltdown and Europe's banks need to be ready with emergency plans of their own, IMF's managing director warns. European and Asian markets have bounced back on the prospects of a revived US bailout deal, but JP Morgan analysts warned yesterday that Europe's banks face another $45 billion in losses before the end of the year, the Guardian reports. More»

Biz slows as bailout talks stall

(NEWSER) - The world's central banks are frantically spraying money into the economy to prevent it from seizing up as the US bailout package stalls and confidence plummets, Reuters reports. The holdup in Washington has made edgy commercial banks even more inclined to hoard cash and not lend to each other—leaving central banks with little choice but to step in. More»

(NEWSER) - Ben Bernanke patted himself on the back today for helping to save the world from a complete economic meltdown, MarketWatch reports. Facing public outrage and the prospect of President Obama dumping him in 6 months, the Fed chair said at a retreat in Wyoming that the world’s central banks “responded with speed and force" to "a rapidly deteriorating and dangerous situation." More»

Journal says Treasury's tally hides damage

(NEWSER) - Banks that received taxpayer aid to restart lending are loaning less than they did before the bailout, a Wall Street Journal analysis finds. The most recent figures available, from February, show a 23% drop in new loans from the lending level in October, when the Treasury Department kicked off TARP, the Journal notes. The figures are a more alarming and possibly more accurate measure than those the Treasury uses. More»

Critics charge growing list of conditions will damage industry

(NEWSER) - A growing number of banks are seeking to return or avoid government bailout funds because of the lengthening list of conditions attached to the money, the New York Times reports. Critics say the terms—including modification of mortgages and caps on executive pay—smack of economic engineering. Bankers are especially worried about the administration's ability to add more conditions at will. More»