Special Report: Global Financial Crisis
WASHINGTON, Nov. 12 (Xinhua) -- U.S. Treasury
Secretary Henry Paulson said Wednesday the 700-billion-U.S.-dollar rescue
package was designed for financial institutions, hinting that the Bush
administration might not use the fund to bail out auto companies.
"We care about our auto industry in the United
States. They area key part of our manufacturing industry," Paulson said. But he
emphasized that the intent of the package "was to deal with the financial
industry."
The Treasury chief suggested that Congress could use
the 25-billion-dollar loan program approved in September to help automakers
develop fuel-efficient vehicles.
"We need a solution but the solution has got to be
one that leads to viability," he said.
Also on Wednesday, the White House said it is open to
any suggestions from Congress on how to help the auto industry.
The Bush administration was not responsible for
automakers' problems, said White House spokeswoman Dana Perino, but she added
the government knows the auto industry is very important to the American people
and it will work with the companies and Congress to find solutions.
Paulson says not to buy bad loans,
assets from banks as planned
WASHINGTON, Nov. 12 (Xinhua) -- U.S. Treasury Secretary Henry Paulson said
Wednesday the U.S. government will not use the 700 billion U.S. dollar rescue
package to buy illiquid mortgage-relates assets from the banks.
However, the Treasury will continue to use 250 billion
dollars of the package to purchase stock in banks as a way to bolster their
balance sheets and encourage them to resume more normal lending, said Paulson.
Full story
Wall Street plunges on updated TARP
program, weak corporate outlook ¡¡
NEW YORK, Nov. 12 (Xinhua) -- Wall Street plunged again
Wednesday as investors digested an update of Troubled Asset Relief Program
(TARP) and Best Buy Co.'s worrisome profit outlook.
Treasury Secretary Henry Paulson gave an update of TARP
Wednesday, saying the second half of the 700 billion U.S. dollar financial
rescue program will not be used to purchase troubled assets as originally
planned. Instead, the program will be used to help relieve pressures on consumer
credit in such areas as credit card debt, auto loans and student loans. Full story
Dollar rises as U.S. gov't not buying
bank assets
NEW YORK, Nov. 12 (Xinhua) -- The dollar rose against most
major currencies on Wednesday after U.S. Treasury Secretary Henry Paulson said
the government won't buy troubled assets from banks.
The euro bought 1.2512 dollars in late New York trading
compared with 1.2531 dollars it bought late Tuesday. The pound fell to 1.4966
dollars from 1.5401 dollars. Full story
Crude oil down 5% on gloomy demand
forecast
NEW YORK, Nov. 12 (Xinhua) -- Crude oil slid another 5
percent on Wednesday as the U.S. government lowered its oil demand forecast due
to global economic downturn.
Light, sweet crude for December delivery fell to as low as
55.62 U.S. dollars a barrel before settling at 56.16 dollars a barrel, trading
down 3.17 dollars, on the New York Mercantile Exchange. It is the lowest
settlement price since January 2007. Full story
