Hebat! Para pejabat US sdh belajar dari pejabat kita, suka mencla mencle... Tahu sendiri deh.
On Thu, Nov 13, 2008 at 12:04 PM, jsx_consultant < [EMAIL PROTECTED]> wrote: > U.S. backs away from plan to buy bad assets > Wed Nov 12, 2008 10:36pm EST > > WASHINGTON (Reuters) - The Bush administration on Wednesday largely > abandoned its plan to buy up toxic mortgage assets and said it will > focus its $700 billion financial bailout fund on making direct > investments in financial institutions and shoring up consumer credit > markets. > > The U.S. Treasury Department initially promoted the financial rescue > package approved by Congress last month as a vehicle to buy illiquid > mortgage assets from banks and other institutions to spur fresh > lending. > > However, that plan never got off the ground and U.S. Treasury > Secretary Henry Paulson told a news conference asset purchases were > not the most effective use of the funds. > > "This is not going to be the focus," he said. Paulson added, > however, that the Treasury would continue to examine the usefulness > of "targeted" purchases. > > Treasury has already tapped the fund to inject capital into banks > and ailing insurer American International Group. Paulson said he was > considering a second round of preferred share purchases in both > banks and non-bank institutions which, in a fresh twist, would match > privately raised funds. > > He also said the Treasury was working with the Federal Reserve on a > plan to help restore credit flows to U.S. households by using > financial rescue funds to lure investors back to markets for > securitized debt, such as car loans, student loans and credit cards. > > The administration's shifting focus disappointed Wall Street and > U.S. stock prices tumbled sharply. The Dow Jones industrial average > closed down 408 points, or 4.7 percent. > > "This hasn't done the Treasury's credibility a world of good," said > Alan Ruskin, chief international strategist at RBS Global Banking > and Markets in New York. "Basically, they found that the market > would applaud direct capital injections more readily than > understanding the complexities of reverse auctions to buy assets, so > it's a pragmatic choice." > > Paulson was unapologetic, saying that by the time the rescue bill > was passed on October 3, it was clear the asset purchase plan would > take too long and would not be sufficient to calm roiling markets. > > "I will never apologize for changing a strategy or an approach if > the facts change," he said. > > COOL TO CALLS FOR HELP > > The $700 billion financial sector bailout is the United States' > marquee effort to combat a credit crisis spawned by rising U.S. > mortgage defaults that is now wreaking economic damage worldwide. > > To help ease the crisis, the U.S. Treasury and bank regulators on > Wednesday issued "guidance" for banks encouraging them to lend and > to rein in any compensation plans that might lead executives to take > excessive risks. > > Earlier on Wednesday, Canada announced a plan to buy up another $41 > billion in insured mortgages and other steps to try to free-up > credit. > > Paulson said the U.S. Treasury was duty-bound to help prevent > mortgage foreclosures, but he warned that further aid would likely > mean a significant government subsidy, signaling a lack of support > for a Federal Deposit Insurance Corp. proposal for more aggressive > aid to borrowers. Continued... > > >