Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Air Algerie investigation continues

Read more

AFRICA NEWS

Dozens of youths trampled to death on Conakry beach

Read more

AFRICA NEWS

Ebola death toll tops 700

Read more

MEDIAWATCH

UNRWA official breaks down over Gaza deaths

Read more

DEBATE

Argentina Defaults - Kirchner Cries Foul Over 'Vulture Funds' (part 2)

Read more

DEBATE

Argentina Defaults - Kirchner Cries Foul Over 'Vulture Funds'

Read more

MEDIAWATCH

Renault's women drivers ad deemed sexist

Read more

FOCUS

Constitution prohibits Aung San Suu Kyi to run for president

Read more

THE BUSINESS INTERVIEW

War and Markets, with Steen Jakobsen, Chief Economist at Saxo Bank

Read more

  • Kerry, Ban announce 72-hour humanitarian ceasefire in Gaza

    Read more

  • 24 killed¸ 271 injured in South Taiwan gas blast

    Read more

  • Argentinian markets plummet following default

    Read more

  • Interactive: France’s new plan to counter jihadism in Africa

    Read more

  • French Jews speak of growing fear in Paris amid Gaza conflict

    Read more

  • Video: Inside Hamas ‘terror’ tunnels in Gaza

    Read more

  • Sierra Leone declares state of emergency over spread of Ebola

    Read more

  • Investigators reach MH17 site amid 24-hour ceasefire

    Read more

  • France remembers murdered socialist hero Jean Jaurès

    Read more

  • Air France ground workers to strike on August 2

    Read more

  • Scores feared dead in India landslide

    Read more

  • Russia ordered to pay further €1.9 billion to Yukos shareholders

    Read more

  • Iraq's Christians: Nowhere to Run?

    Read more

  • Russia defiant as US, EU unveil 'phase three' sanctions

    Read more

  • US House votes to sue Obama for over-reaching his powers

    Read more

'We are going to get a package passed,' says Bush of bailout

Latest update : 2008-09-27

US President George W. Bush said talks were continuing with Congress on the bailout plan. Despite disagreements over aspects of the plan, "we are going to get a package passed," he said.

US President George W. Bush said Friday that negotiations were continuing on a massive rescue package for the US financial sector.

Bush acknowledged “disagreements over aspects of the rescue plan” but said there was a consensus that “something substantial must be done".

"We are going to get a package passed," he said in a brief statement.

Bush’s statement was echoed by Senate Democratic Majority Leader Harry Reid, who said he was confident that Congress would close the deal before markets open on Monday.

Asked at a press conference if Congress could complete the legislation within that time frame, Reid replied: "There's no reason we can't do that."


Congress defies White House over bailout plan

The Bush administration is locked in a battle with the US Congress over the controversial plan proposed by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. Under the plan, the US government would buy up bad debt from US financial institutions, allowing them to remain solvent and head off further market turmoil.

Lawmakers have questioned the cost of the program, estimated at $700 billion, how the government would pay for it and whether US taxpayers should pay for the banks’ mistakes.

At the core of the disagreement lies “a revolt from the right-wing base of the Republican party”, explains FRANCE 24’s Jean-Bernard Cadier. “They won’t accept the plan for ideological reasons, because they are against big government interventions.”

Although Democrats control Congress, they are hesitant to pass the plan without Republican support because of the risk of leaving their party politically exposed in an election season.


Market stress

With negotiations in Washington deteriorating into clashes between Republicans and Democrats, US stocks were losing ground at Wall Street's opening Friday, following losses in Asia and Europe.

In Europe, stock exchanges fell sharply, with the London FTSE 100 index shedding 2.09% to close at 5,088.47 points and the Paris CAC 40 losing 1.50% to finish at 4,163.38.

Lending between banks remains sluggish and confidence low. The US dollar weakened against the yen and Swiss franc, two currencies associated with stability.

"The markets are just caught like a deer in the headlights, watching Washington, trying to figure out what the next step is," Boris Schlossberg, director of currency research at GFT Forex in New York, told Reuters.

But it’s not just Wall Street that’s nervous. In Europe, Jean-Claude Juncker, president of the Eurogroup of euro-zone finance ministers, also expressed impatience at the US Congress’s qualms on Friday.

"I would appreciate it if the American executive and legislators would approve a solid package as quickly as possible," Juncker said. “When I look at financial and stock markets, exchange rates and global confidence indicators, the Americans’ hesitation over their intentions deepens uncertainty.”

Date created : 2008-09-26

COMMENT(S)