OutLine of Bailout

By Abhishek on 2:42 PM

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Rescue Plan -  U.S. Congress will pass a law on Sunday to create a fund of $700 billion to buy bad debts from the hosted banks aiming to minimise the Credit Crisis which is a accused for Global economy mahyem. U.S. congress leaders will talk on Sunday Morning to finalise the map for $700 billion fund. A Congressman stated that this is the worst financial crisis since the Great Depression.

Nancy Pelosi , speaker of  House of Representatives said "We've made great progress",  "We have to get it committed to paper so we can formally agree." Treasury Secretary Henry Paulson had lobbied hard for the package, which would rank as the largest bailout in U.S. history, saying the sweeping program was needed to keep credit markets from grinding to a halt under the burden of bad mortgage debts. Remeber US forth largest bank Lehman Brothers , third largest bank Washington Mutual ( WaMu) is washed from system. Government Purchased the Mortgage Lender Fannie Mae and Freddie Mac and Insurance gaint AIG due to this Sub Prime Crisis. The Carolina based Wachovia is also on the queue..  and government status helped Morgan Stanly and GoldMan Sachs to remain in market.

Congress has been racing to reach an agreement before Asian markets open on Monday to avoid a repeat of last week's white-knuckle volatility.It was unclear when the House and Senate might vote on the legislation or whether last-minute hitches might arise.U.S. President George W. Bush spoke with House Speaker Nancy Pelosi on Saturday evening about the negotiations and news of the deal was welcomed at the White House.
"We're pleased with the progress tonight and appreciate the bipartisan effort to stabilize our financial markets and protect our economy," White House spokesman Tony Fratto said. At one point, lawmakers consulted by phone with billionaire investor Warren Buffett, who last week invested $5 billion in Goldman Sachs and also warned that markets were in a "dangerous situation" and on the verge of breaking down.

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