The Financial Crisis: This Day—One Year Ago, Sept. 28, 2008
Call it the deal of the century.
Congressional leaders from both parties emerge from intense talks to present a $700-billion financial rescue plan agreement on Sunday.
The plan has been revised from earlier proposals put forth by the Bush administration, reflecting changes sought by both Democrats and Bush's fellow Republicans.
"I have great confidence the plan will work as originally envisioned," Treasury Secretary Henry Paulson tells CNBC. "We had to make necessary concessions to protect taxpayers and respond to the political process, but this will result in meaningful assistance to financial markets."
After toiling through Saturday, lawmakers reconvened Sunday to get the plan's terms on paper and ready for full Congressional review.
What You Were Reading:
- Pisani: Market Needs the Bailout!
- Lawmakers to Vote Monday on Bailout Bill
- Market Insider: The Week Ahead
Sen. Judd Gregg (R-N.H.) says he expects the House to vote on the bill on Monday and hopes the Senate does, too. However, with Congress set to close on Tuesday for Rosh Hashanah, the Jewish New Year holiday, the Senate vote could slip to Wednesday.
The proposed legislation would disburse the $700 billion in stages. The first $250 billion would be issued when the legislation is enacted while another $100 billion could be spent if the president decided it was needed.
The remaining $350 billion would be subject to congressional review, says a statement issued by House Speaker Nancy Pelosi.
Oversight provisions, albeit modest ones, have also been added.
Executives from Citigroup are expected to meet today to discuss a possible acquisition of Wachovia, the sixth-largest U.S. bank by assets. Wachovia has begun merger talks with potential partners after its shares dropped 27 percent on Friday and signs depositors are taking their money out of the bank.
What You Were Reading:
Meanwhile, investors continue to worry about a contagion effect as the crisis shows more signs of spilling into Europe.
In London, regulators say they will nationalize troubled mortgage lender Bradford & Bingley, the BBC reports.
Emergency talks are held on Sunday with European Central Bank President Jean-Claude Trichet to save Belgian-Dutch financial group Fortis.
Fortis has been mulling a sale of part or all of the company, which employs 85,000 people worldwide. The firm had fired its interim chief executive late last week, after liquidity concerns pressured its shares to a 14-year low.
The firm calls an emergency news conference to say its position is still strong and that it will expand asset sales to as much as 10 billion euros ($14.6 billion) to raise cash.