Treasury Secretary Timothy Geithner has unveiled a new plan to combat the financial crisis: convincing private financial institutions to buy up “toxic assets” with the government’s backing. While this is a step up from former Secretary Henry Paulson’s original bailout planin which the government itself would buy up the bad securitiesit is still not the right approach. Instead, there is a better, cheaper, less risky, more direct way to improve banks’ balance sheets and restore confidence
Chelsea posted losses of £65.7 million ($93.91m) as they were left to count the cost of managerial departures. The results for the financial year ending on June 30, 2008 revealed that £23.1 million ($33.02m) had been paid in compensation to former Blues managers Jose Mourinho and Avram Grant and five coaching staff. They do not include the payout that Luiz Felipe Scolari is set to receive, reported to be in the region £8 million ($11.44m), following his sacking this week.
Vengeance is mine, saith the Lord, except that right now everyone wants a little piece of it. The mob has been chanting for months, ever since former Treasury Secretary Henry Paulson arrived in late September on Capitol Hill to warn of disaster, pass around his three-page plan and demand $700 billion to fix the problem. Most members of Congress were so spooked they were ready to write a check, until their phone lines started melting with the angry voices of taxpayers demanding details about the likely return on the investment
It hardly bears pointing out that during these days of 7.6% unemployment, when the business pages of the local newspaper look more like the obituaries, no industry is doing well and that includes green business. Wind and solar manufacturers, starved for credit, are cutting back on projects and laying off workers
Switzerland’s biggest bank UBS on Tuesday posted a worse than expected loss of nearly $17 million — the largest ever by a Swiss group — and announced 1,600 new job cuts.