Business | Banking
Citi to buy Wachovia; European banks get bailouts
US regional bank Wachovia Corp succumbed to the worldwide credit crisis and authorities rescued a slew of European banks, while US lawmakers met to vote on a $700 billion bailout of the financial industry.
- Agencies
- Published: 19:35 September 29, 2008
-
US lawmakers agree on deal
Congress likely to vote on bailout plan today
-
Asian stocks fall on concern over US plan
Asian stocks fall on concern US rescue won't bolster growth
-
Key elements of Congress' bailout plan
Factbox: Key elements of Congress' bailout plan
-
US landmark bailout deal near
US Congressional leaders say landmark bailout deal near
-
Bush: Bailout's final cost will be less
Bush: Financial bailout's final cost will be less
New York: US regional bank Wachovia Corp succumbed to the worldwide credit crisis and authorities rescued a slew of European banks, while US lawmakers met to vote on a $700 billion bailout of the financial industry.
US stocks fell more than 2 percent following sharp declines in Asian and European shares on fears the crisis was spreading. Global money markets remained frozen, even as central banks poured in cash in an attempt to boost liquidity.
"These (bank) announcements couldn't have worse timing because they're taking the shine off the potential bailout," said William Larkin, fixed income manager at Cabot Money Management in Salem, Massachusetts.
As lawmakers met in Washington, President George W. Bush urged them to pass the bailout package quickly, saying it was needed to keep the financial crisis from spreading.
The bailout came too late for Wachovia, which agreed to sell most of its assets to Citigroup Inc in a deal brokered by the Federal Deposit Insurance Corp.
"In this period of market stress, we are committed to taking all actions necessary to protect our financial system and our economy," Treasury Secretary Henry Paulson said after the Wachovia deal was announced.
Share this article
Related Articles
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
