March 25: Stocks Manage Moderate Gain
Associated Press
Transcript
wall street has managed a moderate gain after an attack of nerves had investors giving back a big early advance investors initially pounced on two indications that the economy's slide might be starting to slow demand for big manufactured goods and new home sales posted unexpected gains certainly in terms of the sales we think that we are reaching a bottom and that the the turnover will likely increase but we're still facing close to 10 months of inventory so we have an awful lot that we have to work off investors retreated by mid-session as a weak auction of government debt stirred up worries about washington's ability to fund its economic rescue program but buyers returned late in the session and sent the major indexes higher the dow jones industrial average ended the session up 90 points at 7 750. the standard and poor's 500 index tacked on 8 points to finish at 8 14 and the nasdaq rose 12 to end at 1 529. analysts say the day shows just how fragile the market remains despite a strong two-week rally the fragility and uncertainty are expected to continue tomorrow as the government releases two major economic reports weekly jobless claims and fourth quarter gross domestic product james limbach the associated press
Obama Sees 'Signs of Progress' on Economy
Associated Press
Transcript
it was a dramatic contrast with his first news conference where before he saw storm clouds this time president barack obama saw hope we've been in office now a little over 60 days what i am confident about is that we're moving in the right direction he pointed to signs that the housing market may be stabilizing and that banks though still hurting are slowly starting to lend and he said a big reason is the combination of his economic stimulus plan and administration efforts to repair the broken credit markets but he warned that progress could stall if congress doesn't pass his budget a blueprint even some democrats worry piles up too much debt that's why this budget is inseparable from this recovery because it is what lays the foundation for a secure and lasting prosperity critics contend with a deepening crisis america can't afford obama's health care overhaul or his costly plan to fight global warming obama also found himself defending his response to the lavish bonuses at insurance giant aig no he said he was not too slow to voice outrage it took us a couple of days because i like to know what i'm talking about before i speak overall after 64 tumultuous days in office obama pronounced himself pleased with what's been accomplished especially on the economy this is a big ocean liner it's not a speed boat it doesn't turn around immediately but we're in a better better place because of the decisions that we make so while modestly upbeat the president repeatedly sounded notes of caution whether it's solving the banking crisis or making mideast peace he said naughty problems require persistence in fact noting his own history-making presidency he said i'm a big believer in persistence mark smith the associated press the white house
Brown's G20 plan
CNN
Transcript
Today, as you know, an international hurricane is sweeping the world. And so Gordon Brown went on to blame the global financial system, or at least its weaknesses, for the current crisis. He said the system was out of date and out of control. It needed complete reform. It is not enough to promote self-regulation and allow a race to the bottom. We have to agree international standards of transparency, of disclosure and, yes, of remuneration too. Often seen as lukewarm towards Europe, Brown lavished praise on the European Union and said it was uniquely placed to lead the world out of the crisis. His call for tough new supervision struck a chord with many members of the European Parliament. I say every part of what has been a shadow banking system must now be taken into account. We will come under the supervisory net. Gordon Brown's visit to Strasbourg kicked off a whirlwind global tour ahead of a summit of the G20 countries, the largest economies in the world, in London next week. Before travelling to the European Parliament, Brown had met with bankers in London, to some a case of finding the solution by going to the source of the problem. When world leaders converge on London next week, they will be presented with a very ambitious agenda by Gordon Brown, but reaching consensus among 20 participants, as diverse as Brazil, China and the United States, will be a very tall order. Max Foster, CNN, London.
U.S. Seeks Power to Deal with Financial Crisis
VOA News
Transcript
with American International Group rapidly becoming The Unofficial symbol of corporate greed lawmakers were less interested about recent gains on Wall Street instead their focus was on what treasury secretary Timothy gner and Federal Reserve chairman Ben Bernan knew about $165 million in bonuses paid to AIG employees Mr secretary the public needs a straight answer what did the Obama Administration know and when did they know it fed Chief Bernan called the bonuses inappropriate he said he tried to block the payments but was advised the company was obligated under a previous contract I then asked that suit be filed to prevent the payments legal staff counseled against this action on the grounds that Connecticut Law provides for substantial punitive damages if the suit would fail aig's Financial products division is based in Connecticut the government has bailed out AIG for a total of $180 billion ever since the insurance giant claimed it was near collapse treasury secretary gner said the bonuses highlight the failures of the US Financial system but he warned his Department still lacks the regulatory tools to make sure it doesn't happen again and we are proposing legislation to provide those tools and look forward to working with this committee and the Congress to pass such legislation as quickly as possible specifically gner says the treasury Department should have the power to take control of non-banking financial institutions if a company's failure poses a danger to the economy committee chairman Barney Frank notes the Federal Deposit Insurance Corporation already enjoys similar Authority we need to give somebody the authority to do what the FDIC can do with banks last week the house voted to impose a 90% tax on large bonuses given by companies that receive bailouts recent reports show some of the largest AIG recipients have agreed to return $50 million in bonuses milar Sega VA news