Posts Tagged ‘bad debt’
The new concerns about the banks worldwide and deepening recession in the US caused some sharp drops in Asian stocks on Tuesday.
On Tuesday trading, Japan’s Nikkei index ended 2.2% down with 8,711, while Hang Seng in Hong Kong fell 3.7% in day after trading.
This sharp drop was noticed after reports from Bank of America, the largest US bank, in which it showed some great amounts to cover from bad debt.
To tackle the worst financial crisis of the decades, US Treasury Secretary Henry Paulson urges Congress to quickly pass a $700bn package.
According to the plan a fund will be set up to buy back much of the bad debt that financial institutions and banks around the world hold.
In an Interview with US television, Paulson called that financial market turmoil a “humbling experience”. He also urges other countries to have similar plans to build up confidence again.
“I am not going to bet against the long-term fundamentals of this country and its people.” Read the rest of this entry
