U.S. bailout rejected; fear seizes markets
Mon Sep 29, 2008 6:01pm EDT
By Kevin Drawbaugh and Eddie Evans
WASHINGTON/NEW YORK (Reuters) – U.S. lawmakers rejected a $700 billion bailout plan for the financial industry in a shock vote that sent global markets sliding as European authorities scrambled to prop up a slew of banks.
The Dow Jones industrial average .DJI> posted its biggest point loss ever while the tech-heavy Nasdaq .IXIC> plummeted 9 percent — its biggest daily loss since the dotcom bubble burst in 2000. Latin American stocks tumbled 13 percent, their biggest decline in more than a decade.
Proposed legislation details plan to enact historic bailout of nation's financial system. By Jeanne Sahadi, CNNMoney.com senior writer Last Updated: September 28, 2008: 4:17 PM ET
NEW YORK (CNNMoney.com) — The federal government would provide as much as $700 billion in a far-reaching plan to rescue the nation's troubled financial system, according to a draft of the proposed bill obtained by CNN.The legislation is still being negotiated and elements of the bill could still change. Among the provisions of the draft bill:
The $700 billion would be disbursed in stages, with $250 billion made available immediately for the Treasury's use.
Curbs will be placed on the compensation of executives at companies that sell mortgage assets to Treasury. Among them, the bill would limit golden parachutes to executives at companies that participate; they will not be able to deduct the salary they pay to executives above $500,000.
An oversight board will be created. The board will include the Federal Reserve chairman, the Securities and Exchange Commission chairman, the Federal Home Finance Agency director and the Housing and Urban Development secretary.
Allow for the Treasury to receive the option to take ownership stakes in participating companies under certain circumstances.
Treasury may establish an insurance program – with risk-based premiums paid by the industry – to guarantee companies' troubled assets, including mortgage-backed securities, purchased before March 18, 2008.
This is a new twist that no one has ever seen. Sen McCain placed his campaign on hold and wants to head back to Washington to help with the economic bail out Bill. Sen McCain said he also wants to cancel the debate if the bill is not passed.
Chrysler unveils three prototypes: a Dodge sports car, a Jeep and a minivan
Automaker's execs tell reporters they haven't decided which one to roll out first
Chrysler hopes to match GM in the race to build a mass-produced electric car
GM says its Chevrolet Volt will go on sale in November 2010
AUBURN HILLS, Michigan (AP) — Chrysler LLC said Tuesday it will put an electric car on sale in North America in 2010, revealing that despite missing out on the buzz surrounding the Chevrolet Volt, it is neck and neck with General Motors Corp. in the race to put a mass-produced electric vehicle on America's roads.
At least 49 offshore oil platforms, all with production of less than 1,000 barrels a day, were destroyed by Hurricane Ike as it raced across the Gulf of Mexico, and some may not be rebuilt, the Interior Department said Thursday.
Story Highlights
49 offshore natural gas and oil platforms not working; some might not be rebuilt
Platforms produce 13,000 barrels of oil; 84 million cubic feet of natural gas a day
Five gas transmission pipeline systems sustained damage
It's unclear if any oil spills happened, Interior Department report says
