U.S. May Take Ownership Stake in Banks

WASHINGTON — Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, according to government officials.

Treasury officials say the just-passed $700 billion bailout bill gives them the authority to inject cash directly into banks that request it. Such a move would quickly strengthen banks’ balance sheets and, officials hope, persuade them to resume lending. In return, the law gives the Treasury the right to take ownership positions in banks, including healthy ones.

The Treasury plan was still preliminary and it was unclear how the process would work, but it appeared that it would be voluntary for banks.




AIG hits up Fed for more money
Three weeks after an $85 billion bailout, AIG is turning to the New York Fed for additional funding.

NEW YORK (CNNMoney.com) -- The New York Federal Reserve is lending up to $37.8 billion to American International Group to give the troubled insurer access to much-needed cash.

In exchange, AIG is giving the New York Fed investment-grade, fixed-income securities that it had previously lent out to other institutions for a fee. Those institutions are now returning these securities and want their money back.

The new program, announced Wednesday, is on top of the $85 billion the federal government agreed to lend to AIG last month to prevent the global company from collapsing. AIG said last Friday it had drawn down $61 billion.




Asian Stocks Snap Five-Day Plunge After Global Rate Reductions

Oct. 9 (Bloomberg) -- Asian stocks gained after four of the region's central banks cut interest rates, joining a global effort to limit the economic impact of the worst financial crisis since the Great Depression. U.S. futures rose.

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Tonight and tomorrow is the holiday of Yom Kippur, the Day of Atonement.

YOM KIPPUR is the holiest day of the Jewish year, and provides prophetic insight regarding the Second Coming of Mashiach, the restoration of national Israel, and the final judgment of the world.



Interesting times.