At a press conference in the Treasury's ornate Cash Room, Paulson announced that nine large financial institutions "have already agreed to participate in the program." In this program US government will spent $ 250 bln  to get stake in banks. The half of this $250 bln means $125 bln will be invested in country most preffred bank alone and remaning $125 bln, which is the amount of the first tranche Congress authorized Treasury to spend—to be invested quickly in other banks. After that, Treasury would ask Congress to authorize the next $100 billion in funding it approved.

Treasury Sec Mr Paulson said on Oct 14th banks that sell shares to the government will "accept restrictions" on executive compensation, including a ban on golden parachute exit agreements while the government holds the bank shares. Taxpayers will also get warrants for common shares. And the banks will be expected to "continue and to strengthen their efforts to help struggling homeowners who can afford their homes avoid foreclosure."

"Our goal is to see a wide array of healthy institutions sell preferred shares to the Treasury, and raise additional private capital, so that they can make more loans to businesses and consumers across the nation," Paulson said in the statement. "At a time when events naturally make even the most daring investors more risk-averse, the needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it."

Among the firms expected to get funding: JPMorgan Chase (JPM), Citigroup (C), and Bank of America (BAC) were to receive $25 billion apiece; Wells Fargo (WFC) was to get between $20 billion and $25 billion; Goldman Sachs (GS) and Morgan Stanley (MS) were down for $10 billion each, and the Bank of New York (BK) and State Street (STT) were slated for $2 billion to $3 billion apiece.  Citigroup and Goldman Sachs declined to comment on this news.

The substantial sums involved make clear that Uncle Sam could be on the way to owning a vast chunk of the U.S. banking sector.

Who's Said What
 

"Today we are taking decisive actions to protect the US economy," Mr Paulson said.

"We regret having to take these actions. Today's actions are not what we ever wanted to do - but today's actions are what we must do to restore confidence to our financial system." Mr Paulson added: "Government owning a stake in any private US company is objectionable to most Americans - me included.

"Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable.

"When financing isn't available, consumers and businesses shrink their spending, which leads to businesses cutting jobs and even closing up shop."

US President George W Bush said the effort is needed to boost confidence and avert a severe downturn.

"These measures are not intended to take over the free market, but to preserve it," the US President said in brief remarks in the White House Rose Garden.

This Business news fetched from AFP..

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Profit :  Relcap 1700/trade , JP ASSOS - 1125/trade , GAIL - 1250/trade , Short HDFC Bnk - 1650/trade , short REL CAPITAL - 2400/trade.

Loss :  Bank India - Rs1000/trade  ,  ABB - Rs700/trade.

Approx Profit for 14-10-2008 :  Rs 6425/trade.

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Roller Coaster ride continued..... 

After a spectacular rally in U.S. market yesterday our indian market also withnessed a gap up opening of 472 points on sensex. Funds and retails buying happening  in heavyweights, information technology, health care and tech stocks in the afternoon surged the Sensex touch the day's high of 11,870,  but the bulls could not keep the party going on for longs as the markets lost steam and kept on sliding as the trading session progressed. Once it was assumed that it is heading towards the negative zone but late buying in some selective stocks confirms to Sensex to closed almost 174.31 points higher, while the NSE Nifty closed 27.95 points higher at 3518.65 and sensex closed at 11483.40 moved up by 174.31 points on closing basis. BSE Midcap and Smallcap index rose 1.60% and 2.25% respectively

Sectorial:- IT stocks shined the whole day.. while the index of IT flared by wooping 5.36% becaming the biggest gainer over all sectors. BSE HC ( Health Care) was the second biggest gainer on percantage terms, it gained 4.66% and closed at 3405. Stocks from the software, pharma and realty sectors gained investors' intrest; stocks from PSU and metal sectors remained at the receiving end. Worst performing sector was Metal , PSU and Consumer Durables all ended on RED.  Hindalco was down by 4.10% while RCOM shed its gain and closed 4.8% lower.




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