Control of financial sector by kristina leskova

The bailout plan was successfully admitted by representatives and George Bush. The government provided 700 billion dollars to buy bad assets from banks and other institutions. This should help to recover from financial crisis. This plan was supported by 263 representatives and 171 were contra. The depression endangered also the European economy. Nobody knows the amount of risk that lurks in the crisis. If it would continue it could threaten the production and services. The mortgage crisis lasts in USA more than one year, but only few weeks ago it caused serious damages. Some of the biggest American banks bankrupted like Lehman Brothers and Washington Mutual. The biggest insurance company AIG received from the government 85 billion dollars and this saved AIG before bankrupt. Other banks have been nationalized. The bailout plan counts with sequent loosening of money, 250 billion of dollars should be used immediately. The incomes of financial managers are limited and high compensation money is forbidden. One of the reasons of financial crisis is the insolvency to pay for the mortgage. The bailout plan should enable the people to arrange convenient payoffs.
There is still the question what will happen with Fannie Mae and Freddie Mac. These mortgage giants have been overtaken by government after huge losses. The government wants to support the housing market but another thing is to insure maximum shareholder profit. How will the plan continue depends on that which candidate will win the elections – McCain or Obama. But it does not matter who will win, one thing is sure, the financial industry will be more controlled.


related story: http://news.yahoo.com/s/ap/financial_meltdown_regulation;_ylt=Ano9YJZCzZKZGYv8scA2C5ms0NUE

by kristina leskova for PocketNews (http://pocketnews.tv)

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