Wall Street slides as bailout plan rattles markets
U S stocks fall with the Dow down 373 at 11015 as investors fear a 700 billion dollar government plan to buy bank mortgage debt. Oil soars over 25 dollars, a record one day gain, amid dollar weakness and expiring Oct contract volatility. The G seven pledges action to fight the credit crisis as markets panic.
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Congress Bush team agree on terms for bailout plan
The White House and lawmakers near a bailout deal with 700 billion dollars for failing banks mortgage aid and strong oversight included. A plan to prevent foreclosures was discussed as investors reacted with sharp market moves and rising oil and gold prices. Rep. Barney Frank said progress was made as talks continued and the draft proposed limits on executive pay and clawbacks for bogus claims.
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Last major investment banks change status to bank holding companies
The Federal Reserve approved Goldman Sachs and Morgan Stanley to become bank holding companies enabling them to create commercial banks and take deposits. The action follows weeks of crisis driven debates with antitrust and bailout considerations discussed by officials and lawmakers.
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