On Sunday, the crisis does not rest. Nor do those trying to manage it.
The Bush administration and Congress step up talks on a historic $700 billion bank bailout—racing the clock to stem further financial market turmoil.
"This is a new phenomenon for every major player in this place and there are no dress rehearsals." says Peter Kenny, managing director at Knight Equity Markets. "That is why the market is so jittery. This has to work the first time."
What You Were Reading:
- This Crisis Makes S&L Bailout Look Easy
- Jittery Markets Await Pact On Financial Bailout Plan
- Check the US Stock Market Futures
The Federal Reserve announces it has granted a request by the country's surviving major investment banks — Goldman Sachs and Morgan Stanley — to change their status to bank holding companies.
The change will let them create commercial banks that can take deposits, bolstering both firms' resources. It also will put them directly under the regulatory supervision of the central bank.
Meantime, reports say Japan's Nomura Holdings is interested in buying the European operations of Lehman Brothers, while Britain's Barclays will bid for more parts of the bankrupt firm. The news comes a day after a bankruptcy judge approved a revised version of Barclays' deal to purchase Lehman's core US business.
Japan's Mainichi newspaper says that investment bank Morgan Stanley approached Nomura for funding.
And officials of South Korean brokerage Samsung Securities in Hong Kong over the weekend continue to discuss a possible investment in Lehman's Asian operations.
What the Experts Were Saying:
John Harwood speaks with Republican presidential candidate John McCain and his Democratic rival Barack Obama about the "strings" that should be attached to the government bailout plan.
How to play the market this week: Ideas from Doug Kass of Seabreeze Partners Management; Vince Farrell of Soleil Securities; and Jim Lacamp of RBC Dain Rauscher. Larry Kudlow moderates.