Will they or won't they give more to the IMF? It may be tough even if they want to.
US stocks popped up midday on a Reuters headline that the US may back a larger euro financial stability package via the IMF (citing an unnamed official), which was shot down by a Dow Jones headline an hour later.
Traders tell me it may not matter: any such increase in contributions from the US to the IMF would likely require congressional approval, which would be difficult to achieve in the current climate.
The US proportion of total IMF funding is about 17 percent. In June, President Obama got an additional $108 billion in a credit line to the IMF as part of a larger $500 billion program. That program was approved by congress. To give more, would require additional congressional approval.
Is there a way around that? Could an additional contribution be sold to congress and the American people? To bail out profligate European countries? That's a tough call.
Read the Reuters Report:
- US Ready to Back Bigger EU Stability Fund: Official
Today's Market Headlines:
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- Wikileaks May Target BofA
- Stocks Hold Gains After Beige Book; Dollar Falls
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