Can the Senate provide enough add-ons (raising levels of insurance in your bank account) and tax breaks to provide cover for House Republicans? That's the issue. No doubt the Senate will pass the bill.
Meantime European banks are now facing the same issues as U.S. banks, and without a central regulator the task is more delicate.
Mr. Sarkozy, the French President, is planning to meet with his European peers in Paris this weekend to discuss a coordinated effort to address the financial crisis. A JP Morgan analyst noted that European banks may have to write down an additional $40 billion in the second half.
- Money Markets Still Frozen As Lending Rates Soar
In Ireland, they are looking at measures very similar to the U.S. TARP bill, where the Irish government would take a stake in any bank that receives financial support from the government. The legislation is being considered today, and would guarantee all bank deposits, senior and subordinated debt up to 400 billion euros. That is larger than Ireland's GDP of 190 billion euros.
1) financials are mostly flat pre-open; the one exception is National City, up about 12 percent.
2) As soon as this bill is passed, we will turn our attention to the economy. Mortgage applications to purchase a house were down 10.9 percent from the week before. A 30 year fixed rate mortgage remained at 6.07 percent.
3) Deutsche Banklowered its earnings outlook and price target on our parent company, General Electric. Analyst Nigel Coe said "Our adjustments largely reflect deterioration at GE Capital-driven by tighter credit markets, asset shrinkage and debt pay-down-but we also eased back our Industrial assumptions." GE will release its earnings on October 10. GE down 3 percent pre-open.
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