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Fed OKs Mitsubishi Buy Of Morgan Stanley Stake

October 7, 2008 - The Federal Reserve said late on Monday that it approved Mitsubishi UFJ Financial Group's purchase of as much as 24.9% of Morgan Stanley.

Dow Pummeled; Closes Nearly 400 Points Lower

October 6, 2008 - A bailout package may have been approved by legislators, but credit concerns eroded US stock prices, at one point sending the Dow Jones Industrial Average lower by almost 800 points on Monday. The DJIA closed down 359.92 points, or 3.49%, from Friday's close.

Blackstone Completes $600M Chinese Deal

October 6, 2008 - The Blackstone Group has completed its first deal in China, closing a $600 million investment in China National Bluestar. The closing, announced jointly by ChemChina and Blackstone on Monday, finalizes a deal struck more than a year ago.

Lehman Creditors Committee Wants Investigation

October 6, 2008 - The committee of unsecured creditors of Lehman Brothers wants the judge overseeing the storied brokerage’s bankruptcy to allow an investigation of what led to the firm’s downfall.

Jefferson County OKs Seven-Day Forbearance Extension

October 6, 2008 - Jefferson County, Ala., commissioners voted Thursday to approve a seven-day extension of its forbearance agreements with banks and swap counterparties at the request of Alabama Gov. Bob Riley.

The Restructuring of ACA: Model or Cautionary Tale?

October 6, 2008 - With the Aug. 7 announcement by the Maryland Insurance Administration regarding the restructuring of ACA Financial Guaranty, there are questions in the market about how it was designed, how it will work, and whether or not it should serve as an example for future restructurings.

Citi Wins Injunction, Giving Wachovia Deal New Hope

October 5, 2008 - Citigroup won a court injunction Saturday night upholding the exclusivity agreement it had signed with Wachovia on Sept. 29, when the two giants agreed to merge. Citi went to court after Wachovia took a better offer from Wells Fargo on Oct. 3.

House Passes Bailout Bill

October 3, 2008 - The House reversed Monday's rejection of a bill to stabilize the financial markets approving the measure on Friday. Having cleared the Senate on Wednesday, the bill heads to the White House, where President Bush is expected to sign it promptly so that the Treasury Department can begin purchasing illiquid assets.

Wells Fargo To Acquire Wachovia

October 3, 2008 - Wells Fargo agreed to acquire Wachovia in a $15.1 billion deal. The transaction would scuttle a deal announced on Monday in which Citigroup was to acquire Wachovia’s banking operations for $2.2 billion.

Cruel September For Hedge Funds

October 3, 2008 - In what is expected to have been the worst month for hedge-fund performance in a decade, funds could be down as much as 5% to 9% on average in September alone, according to hedge-fund research firm Hennessee Group.

'It's Credit, Stupid!'

October 5, 2008 - Secretary Paulson has united the country in opposition to his plan to bail out the global credit markets and, as usual, the country’s got it right. We need a plan--make no mistake. Forget the volatility of equity markets--they are only the telltale of our economic condition. It is the global credit markets which are seizing up and threatening economic stability.

MBIA Goes After Countrywide For Fraud

October 3, 2008 - Fraudulent practices and false representations made by units at Countrywide Financial led MBIA to guarantee mortgage-backed securities that have already cost the insurer $459 million in policy claims and exposed it to several hundred millions more, MBIA said in a lawsuit filed earlier this week.

Treasury Extends ARS Deadline

October 2, 2008 - The US Treasury Department announced yesterday that governmental issuers can purchase and hold auction-rate securities, variable-rate demand bonds with seven-day put options, and tax-exempt commercial paper until Dec. 31, 2009.

Europe Eyes More Options For Bailout Plan

October 2, 2008 - France, which holds the European Union presidency, is working on a €300 billion ($417 billion) bailout fund to rescue European banks caught up in the credit crunch, according to press reports. The cash could be used either to help recapitalize banks or to create a US-style deposit for illiquid mortgage securities.

Senate Gives Bailout Bill Green Light

October 2, 2008 - The Senate approved a bill 74 to 25 late Wednesday that is designed to stabilize the financial markets. The crux of the bill would let the Treasury Department purchase and hold up to $700 billion in troubled assets from banks and other financial institutions.