Paulson announces government will move ahead with plan to buy stock in financial institutions.

CREDIT: Web News - 10-10   06:37 PM

Web News: We are developing strategies to use the authority to purchase and insure mortgage assets and to purchase equity in financial institutions, as deemed necessary to promote financial market stability.

Markets nervous over Lehman auction

LEHMQ: Guardian Unlimited - 10-10   06:09 PM

Analysts predict settlement of credit derivatives will trigger payout of up to $400bn

Alistair Darling calls for world’s financial leaders to take decisive action- £2.7 trillion wiped off the global value of shares as confidence collapses

ECODATA: London Times - 10-10   06:03 PM

London Times: Finance ministers and central bank chiefs from the West’s leading economies were moving to quell the fear last night with moves to shore up their banking systems and prevent a full-scale meltdown of the world financial system. Such was the level of panic, however, that officials gathered in Washington were forced to contemplate the previously unthinkable: that Britain’s enfeebled banks may face outright nationalisation if Gordon Brown’s £50 billion bailout fails.

Swiss Banks Hold On as Zurich Frets

UBS: Web News - 10-10   05:57 PM

UBS and Credit Suisse are weathering the financial storm. But even the chance of a bank failure has Switzerland feeling tense

'We can solve this crisis'

FINANCE: CNN - 10-10   01:43 PM

President Bush today encouraged the American people to have confidence in the economy and said the U.S. government is acting to resolve the financial crisis and stabilize the markets. "We are a prosperous nation with immense resources and a wide range of tools at our disposal ... We can solve this crisis and we will," Bush said in remarks from the White House Rose Garden.

Credit Default Swap Auction TODAY for Lehman - "Will Investors Have the money to Pay"?

CREDIT: BLOOMBERG - 10-10   06:16 AM

An auction to be held today will determine the size of the payments buyers of default protection can claim after New York- based Lehman filed for the largest bankruptcy with $618 billion in debt. Lehman's $128 billion of bonds were trading yesterday at an average of 13 cents on the dollar, indicating credit swap sellers may have to pay 87 cents on the dollar.

Canada to announce mortgage repackaging plan Friday

CANADA: FINANCIAL POST - 10-09   10:42 PM

Measures to be introduced Friday morning would have the federal government acquire mortgages from lenders. The government would repackage the mortgages into securities for sale in the market.

Morgan Stanley Rating May be Cut by Moody's, Goldman Outlook is Negative

MS: BLOOMBERG - 10-09   10:33 PM

BLOOMBERG: Morgan Stanley, the U.S. securities firm whose shares dropped 26 percent yesterday, had its long-term credit ratings put on review for a possible downgrade at Moody's Investors Service.

Japan's Yamato Life Insurance goes bankrupt

PACRIM: THE ECONOMIC TIMES - INDIA - 10-09   10:28 PM

Japan's Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to fail amid the global credit crisis, the financial watchdog said on Friday.

IMF draws up emergency bail-out plans for countries

CREDIT: Guardian Unlimited - 10-09   07:49 PM

Guardian Unlimited: The International Monetary Fund has drawn up emergency plans to bail out governments affected by the financial crisis, after warning yesterday that no country would be immune from the ripple effects of the credit crunch.Dominique Strauss-Kahn, the Fund's managing director, said it could make "hundreds of billions of dollars" available to either rich countries in the west, or to developing nations.

Extreme leverage haunts Europe's banks as rollover crunch looms

CREDIT: Telegraph - 10-09   07:46 PM

The interbank lending system was largely frozen yesterday, dashing hopes that the dramatic half point cut by the European Central Bank this week and a raft of emergency measures by Germany, France, Italy, and Spain, would end the panic in the credit markets.

Dow falls more than 600 points.

MARKETS: CNBC - 10-09   04:07 PM

Another washout overtook Wall Street Thursday, sending major averages down as much as 7 percent as traders bailed out of the credit-battered stock market. The stock market's afternoon selloff sent Dow below 9,000 for the first time in five years, as unshakeable fears from the credit freeze combined with the expiration of short-selling rules to beat down stocks for the seventh straight day.