Asian Markets Tumble Across the Board
Associated Press
Transcript
in the first full day of trading since Congress passed a massive $700 billion bailout Bill Asian stocks taking a major hit across the board stocks have plunged Japan's nikay down more than 4% falling to a four-year low the hangsang in Hong Kong down more than 4% in Indonesia stocks slid more than 5% they were also down in Australia South Korea India and Singapore I'd say the overall sentiment is is terrible uh obviously people are losing money they're worried about the health of the institutions they're worried about counterpart party risk they're worried about regulatory risk that they might simply you know change the rules unpredictably at at some point I think in general uh people are really worrying about how bad it will be over the next year and uh you know finding it hard to to get any real bright spots in the overall picture investors are concerned about a number of issues it started Friday with a dismal report on the US job market the economy lost 159,000 jobs last month the fastest pace and more than in 5 years and over the weekend increased worries about an increasing credit crunch in Europe on Sunday Germany announced a new bailout package totaling 50 billion EUR for the country's second biggest commercial property lender with all of these figures Futures are pointing to a lower start on the trading day on Wall Street if there is good news for consumers oil prices tumbled in early trading Monday falling to $90 a barrel Brian Thomas the Associated Press
Bush: Financial Rescue Plan Will Take Time
Associated Press
Transcript
it's nice to be here in San Antonio I've just had a um uh a very uh Illuminating a conversation with small business owners here we have a u car dealer a automobile repair shop a restaurant tour two restaurant tours and it's clear that these small business owners are dealing with uh the effects of a credit Crunch and by that I mean that they're having trouble uh getting money to be able to continue to either expand their business or to be able to money to help their consumers be able to buy their products and it's uh and I told them one of the reasons why you know I was so strongly for this rescue package was inherent in the strategy of the rescue package is to free up credit is to get money moving and it's going to take a while I signed a bill on uh uh last week but it's going to take a while to get in place a program that one uh is effective two that doesn't waste taxpayers money we don't want to rush into this situation and not have uh the program be effective uh it's it's going to take a while to restore confidence in the financial system but one thing people can be certain of is that the bill I signed is a big step toward solving this problem a lot of people here in Texas and around the country are not pleased with the government having to take the steps they took their question is I pay my bills I pay my mortgage why why why are you helping Wall Street and the answer is because uh had we not done anything people like the folks behind me would be a lot worse off we we'll make sure as time goes on this doesn't happen again in the meantime we got to solve the problem and that's why people sent me to Washington DC when you see a problem put a team together and solve it and uh I I want to thank you all for your time I'm glad to be back here in Texas I miss my friends in Texas I I am uh you know people say you're looking forward to coming home yeah I'm looking forward to living here but in the meantime it looks like I'm going to have a lot of work to do between today and when uh when the new president takes office but Laur and I are glad to be with our friends and U thank you for your time thank you all very much
Congress Opens Hearings on Financial Meltdown
Associated Press
Transcript
another remarkable document is a request submitted to the compensation Committee of the board on September 11th four days before Layman filed for bankruptcy it recommends that the board give three departing Executives over $20 million in quote special payments in other words even as Mr fold was pleading with secretary pulson for a federal rescue Layman continued to squander Millions on executive compensation what's fundamentally unfair about the collapse of layman is its impact on the economy and taxpayers Mr fold will do fine he can walk away from Layman a wealthy man who earned over $500 million but taxpayers are left with a 700 billion uh dollar bill to rescue Wall Street and an economy in crisis risk-taking has an important role in our economy but Federal Regulators are supposed to ensure that these risks don't become so large that they can imperil our entire economy they failed miserably The Regulators had blind faith in the market and a belief that what was good for Mr fold and other Executives on Wall Street was good for America and we're now all paying a terrible price we can't undo the damage of the past eight years that's why I reluctantly voted for the $700 billion rescue plan but we can start the process of holding those responsible to public account and of identifying the reforms we need for the future
Dow Closes Below 10,000, a Four-year Low
Associated Press
Transcript
this was one of the wildest days in my 30 years down here I don't think we've hit bottom yet I think it could get a lot worse it's the nightmare that this economy can't seem to shake markets took yet another hit Monday as the Dow plunged below the 10,000 level distressed investors cringed watching the Dow drop as much as 800 points before rebounding by the end of the day how much the ECB again saying that they may lower rates and the is of course banki with lower rates too so that's why you saw a little bound the trading day was off to a rocky start after the global markets all recorded heavy losses the Dow Jones Industrial Average ended the day down 370 points at 9,955 the standard and pores 500 Index shed 42 at 1,57 and the NASDAQ composite index fell 84 to 1,863 the markets continue to jump around as investors worry we are moving from the Panic phasee through the capitulation phase and approaching what I call the despondency phase where instead of investors asking uh when is it time to get back in now they're asking is it uh too late to get out and that fear doesn't stop at Wall Street I'm definitely nervous about but at the same time I feel like we've been um doing unsustainable growth you know with the the tech bubble and then the real estate bubble and how many more times can we do this before we start regulating trying to keep an eye on industry so that it's a little more fair and open and honest for everybody investors now wonder how many more days markets can sustain the blows that seem to keep coming it's a very critical week if in fact tomorrow we don't have a bounce it's going to be interesting to see what happens rest of the week after yet another record- breakingly bad day on Wall Street what happens next is anyone's guess but investors are watching not only the US markets but the international markets very carefully now as well in New York Bonnie go the associated press
Lehman Brothers CEO Testifies on Capitol Hill
Associated Press
Transcript
another remarkable document is a request submitted to the compensation Committee of the board on September 11th four days before Layman filed for bankruptcy it recommends that the board give three departing Executives over $2 million in quote special payments in other words even as Mr fold was pleading with secretary pulson for a federal rescue Layman continued to squander Millions on executive compensation nobody including me anticipated how the problems that started in the mortgage markets would spread to our credit markets and our banking system and now threaten our entire Financial system and our country like many other financial institutions Leman Brothers got caught in this financial tunami but I want to be very clear I take take full responsibility for the decisions that I made and for the actions that I took based on the information that we had at the time I believed that these decisions and actions were both prudent and appropriate none of us ever gets the opportunity to turn back the clock but with the benefit of hindsight would I have done things differently yes I would have I feel horrible about what has happened to the company and its effects on so many my colleagues my shareholders my creditors and my clients as CEO I was a significant shareholder and my long-term Financial interests were completely aligned with those of all the other shareholders no one had more incentive to see Leman Brothers succeed and because I believed so deeply in the company I never sold the vast majority of my Leman brother stock and still owned 10 million shares when we filed for bankruptcy
Money Minute: Bailout Funds, Ford, Oil
Associated Press
Transcript
EP money minute Neil casari a former Goldman Sachs executive has been named interim head of the government's $700 billion rescue effort for financial institutions casari the treasury's assistant secretary for international Affairs will had the office created by the legislation enacted Friday to fund the largest government bailout in history Ford is rethinking its decision not to bring the tiny European C model to the United States Ford's chief executive Alan malali says that a lot of people share the opinion the C should be available in the US a new version of the C was unveiled last week at the Paris Motor Show and oil has continued its downward slide light site crude closed down more than $5 at 8781 a barrel in New York I'm Mark hamri with ap money minute
Overseas Markets Fall on Financial Turmoil Fears
Associated Press
Transcript
overseas investors still concerned about the health of the global economy have sunk stocks in Europe and Asia the slide comes despite big government bailouts for banks around the globe over the weekend German Prime Minister Angela Merkel announced her government would guarantee the country's private bank accounts $785 billion in personal savings and checking deposits news of the move was not enough to satisfy Traders as German stocks slid more than 5% meanwhile the head of the international monetary fund is when in on the crisis promising to look at ways to improve the world's Financial systems the first thing is to put things out of fire the United States are doing that the European Union is doing that that's the first step the Second Step will be to try to uh rebuild the house in a better way analysts are attributing the overseas Market worries to a lack of confidence in bailout plans passed in the US and Europe one says it appears the credit crunch looks like it's not going away anytime soon Diane kepley the Associated Press
Wall Street Off More Than 500 on Global Sell-off
Associated Press
Transcript
to break 10,000 this morning to go below 10,000 where we are now it's very disconcerning financial markets took a bleak view of the future Monday the Dow Jones Industrials skitted more than 500 points and fell below 10,000 for the first time in 4 years and we never thought we'd see this kind of action from the market we figured we see a gradual uptick I mean the the plan really is implemented for 45 days but still you figured confidence would come back what we're seeing is no confidence the selloff was fueled by the sobering realization that the bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets the selling in New York was so extreme that only 98 stocks Rose in the nysse 392 dropped I just think we're seeing a follow through from Friday's Market the expectation was Buy on the rumor sell on the news we finally got the news of this bailout package that when we finally figured out the numbers there are some analysts out there suggesting that we are probably only onethird of what we really need to try and save the economy if we're going to really lie on Congress and a bailout package of 700 billion Monday steep decline indicates that investors are becoming more convinced that the country is leading to prolonged economic crisis that is spreading to other nations indeed markets in Europe and Asia plunged earlier in the day on fears of a global recession Diane kepley the Associated Press
Wall Street Tumbles Amid Global Sell-off
Associated Press
Transcript
unfortunately the $700 billion doll bailout plan has done very little to restore investor confidence overnight Global markets have taken a huge hit London Paris Frankfurt all have seen markets down between 3 to 6% now the European markets have been dealing with the government Rescue of two of its largest lenders Belgium's Forest as well as Germany's hypo real estate all experiencing the same type of credit freeze that we are here in the US the Dow is down right now although investors are watching it very carefully to see whether or not this bailout plan will be able to quickly and successfully unfreeze the credit markets in time to see a real lasting effect on the economy in New York Bonnie go the Associated Press
Bush Says Bailout Will Work
CBS
Transcript
I spent this morning in San Antonio with some small business owners they were U rightly concerned about our economy and their ability to get credit they were wondering about uh a man they know who believ strongly in free markets and wondering why I promoted a significant piece of legislation to deal with what I believe and others believe is a significant problem and that is the inability of credit to move as freely as we want and I told them if I thought that the problem would be contained only to Wall Street I would have taken a particular point of view but I told them I was concerned about them just like I'm concerned about you and therefore proposed uh with the Congress a big rescue plan to deal with a big problem I believe that um that this plan will work over time I signed a bill on Friday it's going to take time for the treasury Department to put a plan in place that won't waste your money and that will achieve the objetive objective I believe in the in the long run this economy is going to be just fine it's a resilient economy it's a productive economy with good workers it's a uh this is a reminder that we have been through tough times before and we're going to come through this just fine and so I'm telling my fellow citizens like the three people I had coffeee with there in San Antonio that this plan is big for a reason and the plan is going to take time to implement and uh I uh in the meantime I told them to keep you know selling their products and working hard so I want to thank you for giving me a chance to come and talk about Judges but before I did so I wanted to share with you my my morning and I'm sure you hear hear the same thing people are just wondering you know are these Banks going to freeze up and my answer is we got a plan to deal with it
Euro Market Meltdown
CBS
Transcript
they were calling it meltdown monday on european markets the steepest fall in 20 years or more now robert just tell us what you've seen today it's serious how serious uh louise it's a mess british stocks hit a four-year low the fall in france was the worst ever shares in germany dropped more than seven percent and in russia almost 20 percent it's looking like absolute carnage out there one can safely say now that this crisis is going to get worse in europe before it before it gets better governments across europe now are bailing out their banks and promising to protect savers but it's happening piecemeal despite european leaders weekend pledge to work together after hank polson asked for a clear act of coordination by banks around the world you would have hoped that the european union could have actually had a coordinated approach as it as it has actually panned out over the weekend they look like cats in a sack all scratching one another instead of inspiring confidence they're squabbling leaving markets in chaos and driven by fear said one analyst here who added we'll get through it but there will be more casualties along the way richard roth cbs news london
Dow briefly drops below 10,000; global credit crisis deepens
CBS
Transcript
Another major plunge for the markets amidst signs the economic crisis is going global. At one point, the Dow plummeted more than 800 points, dropping below 10,000 for the first time in four years. Credit is very tight. Banks have cut down loans to each other and consumers. And it could be some time before Washington's rescue package loosens up lending. Banks in Europe are looking for help to stay afloat, and stock markets worldwide slumped significantly Monday. Also down, oil. The price for a barrel of crude traded below $90 for the first time in eight months. And the first government hearing into what caused the financial markets to collapse focused on Lehman Brothers. Internal documents show that just days before the company went bust, there was a request that three departing executives received $20 million. The government let Lehman go out of business, making it the largest bankruptcy in US history. And the fight over Wakovia continues. You may remember Wakovia agreed to sell part of its operation to Croup, then days later made a better deal with Wells Fargo. Well, Croup is now suing Wakovia and Wells Fargo for more than $60 billion in damages. And that's your money watch. Log on to cbsnews.com for more business headlines on Wall Street. I'm Alexis Christopherus.
Bailout doubts plummet markets
CNN
Transcript
It was the first day of trading after a week-long holiday here in China and it started off badly and ended even worse. The Shanghai index fell within minutes, down 4 percentage points, and closed today, down 5.23%. Now, this is the first time we've gotten a chance to see how the Chinese markets are reacting to the passage of the U.S. bailout bill. Now, keep in mind, the Chinese markets are a bit more removed from global financial trends. There aren't as many foreign investors involved, they're more closed off to the rest of the world, and they have much less exposure to the U.S. subprime mortgage crisis. Now, ahead of the national holiday, the Shanghai index was rebounding, but over the last year, it's fallen about 60%. Now, that's due to a number of things, including the global financial crisis, domestic hits to the economy, and also now possible skepticism to this U.S. bailout bill. Now, government leaders here in China have done their part to ensure that Chinese financial institutions are safe and sound, and analysts seem to agree that the Chinese economy is robust. It may be slowing down a bit, but that might just be the economy correcting itself after several years of overheated growth. And what China can do is rely on domestic demand. To muscle through this financial crisis while the rest of the world may be struggling. Emily Chang, CNN, Beijing.
Nation's Capital Is Recession-Proof
VOA News
Transcript
in the u.s capitol lawmakers are focusing on avoiding financial collapse across town at the washington convention center local real estate developers say it is business as usual christian a mosh with studios architecture is currently hiring people to work on multi-million dollar development projects for u.s government agencies from our perspective it's been fairly stable and again it's been insulated from the rest of of the region at some level because of all the government business that exists here real estate developer gary mcmanus with forest city washington says he was able to get a 250 million dollar loan to build an office complex because the local government is contracted to occupy much of the space the first two buildings are completely leased 500 000 square feet to the dc government so that's that's a very bright spot and i think it shows that there is credit out there and that good projects are moving ahead the verizon center sports arena revitalized dc's chinatown and boosted the city's real estate market business leaders say because of the federal workforce and federal spending in the region the city is a good investment washington is ranked second in the world in attracting foreign investors and its office vacancy rate is only 7 percent washington real estate broker john germano says the pending economic downturn will not drastically affect the local area our vacancy rate which is one of the the metrics that we use may climb in the worst instance in aggregate to 14 there are many other markets in the country that would if they ever got to 40 down to 14 they'd be doing backflips down main street while some business leaders privately expressed concern about the long-term economic outlook most here say the federal government insulates the nation's capital from the country's financial woes brian patton voa news
Lehman Brothers Probed
CBS
Transcript
I feel bad. Still seething over having to pass a $700 billion bailout, Congress today found a target for its frustration. I feel horrible about what has happened to the company. Richard Ful, chief executive of Lehman Brothers, was asked how he could personally pocket more than $300 million in the eight years leading up to Lehman's bankruptcy. Is that fair for the CEO of a company that's now bankrupt to have made that kind of money? It's just unimaginable to so many people. And how asked lawmakers, could Leman spend $10 billion in bonuses and stock buybacks when its business was spiraling downward? At the end of 2007, uh, I did not believe at the time that we had a liquidity problem. Fold was confronted with his internal Lehman memo. Some employees citing worsening market conditions wrote, "Top management should forego bonuses this year." Leman Executive George H. Walker, President Bush's cousin, responded with ridicule, reassuring top colleagues they'd be paid. Sorry, team. Walker wrote, "I'm not sure what's in the water." Fold echoed that, writing, "Don't worry. You remember that email. I do not." Lawmakers also asked why executives continued to say Lehman was healthy when they knew otherwise. Your internal documents said that conditions are clearly not sustainable. This document does not look familiar to me. Fold asked for no pity, but showed his own anger when asked about Leman's bankruptcy. Why? Lawmakers wanted to know, did the Bush administration allow Lehman to fail when Bear Sterns, AIG, and others all got government lifelines? Until the day they put me in the ground. Exactly. I will wonder. The Capitol Hill fingerpointing continues again tomorrow as two executives from AIG face the very same committee. Katie Bob or in Washington. Bob, thank you.