Bailout deal negotiations break down
Originally published 08:16 p.m., September 25, 2008
Updated 09:18 p.m., September 25, 2008
Washington DC — UPDATE: Capitol negotiations break off on financial bailout, Democrats blame House Republicans.
Urgent efforts to lash together a $700 billion rescue plan for the national economy broke apart Thursday night, hours after key lawmakers had declared they had reached a deal.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke sped to Capitol Hill to try to revive or rework the proposal that the Administration says must be quickly approved by Congress to stave off economic disaster.
Congressional leaders were to meet with the economic chiefs into the night.
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In related news, JPMorgan Chase & Co. Inc. acquired the assets of Washington Mutual Inc.'s banking operations Thursday after federal regulators seized the ailing thrift, the company's largest.
The deal marks the second time in six months that JPMorgan Chase has taken over a financial institution crippled by bad mortgage bets.
The deal will cost JPMorgan Chase $1.9 billion. The Federal Deposit Insurance Corp., which insures bank deposits, said it would not have to dip into the insurance fund as a result of the seizure.
The Seattle-based thrift has roughly $310 billion in assets and was searching for a lifeline after piling up billions of dollars in losses due to failed mortgages.
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Sep. 25, 2008 at 8:47 p.m. (Suggest removal)miles (anonymous)
John McCain showed strong leadership in returning to Washington to hammer out a solution that, hopefully, will provide a viable alternative to the Poulson plan. Everyone recognizes that we need to do something now, but the Poulson plan was being rammed down the taxpayers' throats. It seems no one was willing to try to come up with anything better, until McCain said, "We have to do better," and then went to work for us. Thank you, John McCain. Keep their feet to the fire. You're earning my vote, and my continued respect.
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