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Look like it may happen 2morrow at STI. Now DJ -190, triggering by EU -ve market closed.
Hence, trade with cautious loh. No call for anything. CA applies.
dcang84 ( Date: 13-Nov-2008 00:00) Posted:
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Treasury Secretary Henry Paulson said he was backing away from buying troubled mortgage assets using a $700 billion bailout fund, instead favoring a second round of capital injections into financial institutions that would match private funds.
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AP
Henry Paulson |
Paulson, in an update on the Treasury's financial rescue efforts, said his staff has continued to examine the benefits of purchasing illiquid mortgage assets under the so-called Troubled Asset Relief Program.
"Our assessment at this time is that this is not the most effective way to use TARP funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role, relative to other potential uses of TARP resources," Paulson told a news conference.
Paulson's announcement came shortly after federal bank regulators, seeking to address criticism about the government's $700 billion bailout plan, issued new guidance to banks encouraging them to continue lending to credit worthy borrowers.
The guidelines, issued by the Federal Reserve and three other federal banking regulators, also encourage institutions to work with mortgage borrowers to avoid defaults.
In addition, the guidelines encourage the banks to set dividend payments for shareholders and compensation for executives with the current crisis in mind.
The guidelines seek to address criticism that banks obtaining funds from the $700 billion rescue plan could simply use the money for their own purposes rather than helping struggling homeowners and the overall economy.
Critics are concerned that banks, which are getting $250 billion through government purchases of their stock, are not using the money to boost lending to customers, one of the main reasons why the economy is in a crisis.
"If underwriting standards tighten excessively or banking organizations retreat from making sound credit decisions, the current market conditions may be exacerbated, leading to slower growth and potential damage to the economy," according to the regulators' guidance.
The Fed, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, and Office of Thrift Supervision said all financial institutions were expected to follow the new guidelines, even those not receiving federal assistance.