Subscribe to Print Edition | Fri., October 03, 2008 Tishrei 4, 5769 | | Israel Time: 17:32 (EST+7)
Haaretz israel news English
web haaretz.com
  Back to Homepage
Haaretz Toolbar
Diplomacy
Defense Jewish World Opinion National
Print Edition
Car Rental
Books Haaretz Magazine Business Real Estate Easy Start Travel Week's End Anglo File
Comments:  25
Last update - 22:21 02/10/2008
TASE suffers sharp losses as Senate okays $700b bailout
By Tal Levy and Yuval Maoz, TheMarker and The Associated Press
Tags: bailout, U.S., finance 

The Tel Aviv Stock Exchange suffered sharp losses Thursday, a day after the U.S. Senate approved a landmark $700 billion bailout package for the beleaguered American financial sector. The bill then went to the House of Representatives for approval.

In Tel Aviv, the TA-25 fell 4.5 percent while the TA-100 dropped 5.3 percent. The Tel Tech index lost 6.1 percent of its value. As trading began earlier in the day, the TA-Real Estate 15 Index recorded a 7.4 percent loss.

The Senate approved the $700 billion bailout late Wednesday as opposition to the package among House Republican conservatives appeared to be softening, thanks partly to a provision increasing insurance for bank deposits.
Advertisement
Bailout was approved by a vote of 74 to 25. Both presidential candidates Barack Obama and John McCain voted in favor.

President Bush called on the U.S. House of Representatives to pass the deal, saying in a written statement that, "With the improvements the Senate has made, I believe members of both parties in the House can support this legislation."

"The American people expect - and our economy demands - that the House pass this good bill this week and send it to my desk," Bush said, adding that the bill is "essential to the financial security of every American."

Congressional leaders from both parties said they were hopeful that a new version of the rescue plan could be cleared late this week after its stunning defeat that sparked a historic stock sell-off on Monday. House Democratic leaders tentatively planned a Friday vote.

One House Republican who joined two-thirds of his party's lawmakers Monday in voting 'no' indicated he was reconsidering his stance. Others were also pondering a switch, according to congressional officials who spoke on condition of anonymity because they have not publicly committed to changing their votes.

Rep. John Shadegg, a leading conservative, told a radio station Wednesday that he would be inclined to vote in favor of the bill if it raised the cap on federal deposit insurance and changed a rule that forces companies to devalue assets on their balance sheets to reflect the price they can get on the market.

The revised package to be voted on in the Senate, which adds $100 billion in tax breaks for businesses and the middle class, temporarily increases the deposit insurance cap from the current $100,000 to $250,000. The Securities and Exchange Commission said Tuesday it was easing the accounting rules in some cases.

In a statement Wednesday, Rep. John Boehner, the Republican minority leader, called both a victory for House Republicans.

Congressional leaders said the changes should improve the package's chances - a message they hoped would not get lost on a convulsive Wall Street and global financial markets waiting for a solution to the crisis.

Some also saw heightened odds for the measure based on a flood of e-mails, calls and letters from constituents chiding Congress for inaction on the financial crisis. The feedback indicated greater public acceptance of the measure - if not a collective embrace - by voters about five weeks before the elections.

House Republican Whip Roy Blunt said calls and e-mails to congressional offices that were running about 90 percent against the measure earlier now are coming in at about a 50-50 pace.

Even a 50-50 proposition might have been attractive on Wall Street, where the Dow Jones industrials at times lost more than 200 points in their third triple-digit move this week. Credit markets remained extremely tight and stocks also fell on a report that an index of manufacturing activity fell significantly in September.

U.S. President George W. Bush planned to call lawmakers ahead of the crucial vote, Democratic presidential nominee Barack Obama and his Republican rival, John McCain, planned to fly to Washington for the Senate vote, as did Democratic vice presidential nominee Joe Biden, adding to the political intrigue, and the White House continued to lobby hard, both publicly and privately.

At the daily briefing Wednesday, spokesman Tony Fratto took the unusual step of citing the New York Times, as well as papers across the country that carried stories on the tightening credit squeeze on small businesses, municipal projects and jobs. "It is affecting real Americans out there," he said.

The legislation essentially would allow the government to buy bad mortgages and other devalued assets held by troubled financial institutions. If successful, advocates of the plan believe, that would help lift a major weight off the already sputtering national economy.

Officials in both parties predicted the measure would pass the Senate by a wide margin.

Behind the scenes, the president was conferring with Treasury chief Henry Paulson and Fed chairman Ben Bernanke to get an update and to plot strategy. The presidential spokesman told reporters that Bush's calls so far have all been very positive. "We feel that there's a sense of momentum," he said.

Fratto called the increased deposit insurance an important improvement to the bill, and also welcomed the added tax breaks, calling them helpful despite the White House's initial desire for a clean bill.

Scrambling to revive a package that met with bitter derision among constituents who viewed it as a giveaway to Wall Street, the Senate added a number of sweeteners designed to please rural lawmakers, including disaster aid for hurricane-battered states and money for rural schools.



Related articles:
  • Tel Aviv, we have a problem
  • Bank of Israel chief holds emergency talks over global financial crisis
  • It's you, stupid
    • Bookmark to del.icio.us  
     
    Rise in anti-Semitism
    ADL warns financial crisis is causing upsurge in anti-Jewish activity on the internet.
    Bubbes for Obama
    Comedian posts video calling on Jews to lobby Florida grandparents to vote Obama.
      1.   Financial bills cannot originate in the senate 01:18  |  Mark Lincoln 02/10/08
      2.   Mark Lincoln 06:05  |  Jane 02/10/08
      3.   Jane/Mark - Technical Correction 07:05  |  Mark of Lewiston 02/10/08
      4.   The Senate passes "the bailout" 07:32  |  Zamarah 02/10/08
      5.   Can`t We Sell Asteroids? 07:42  |  Yosemite 02/10/08
      6.   The Great US Social Housing Corporation 09:19  |  Clickfool 02/10/08
      7.   Yosemite - The Futures Market 09:48  |  Mark of Lewiston 02/10/08
      8.   The Israeli chief banker 13:32  |  Paul Wood 02/10/08
      9.   Business as usual. The US Senate priorities. 14:24  |  Maureen Ann 02/10/08
      10.   Senate wakes up late 19:23  |  American 02/10/08
      11.   #10 American 20:21  |  Alicia 02/10/08
      12.   Jane - I can`t blame them 20:46  |  Mark Lincoln 02/10/08
      13.   Jane more to it than that 20:49  |  Mark Lincoln 02/10/08
      14.   We agree on this Jane 20:52  |  Mark Lincoln 02/10/08
      15.   After the Election 20:57  |  Mark Lincoln 02/10/08
      16.   Why no cash reserve? 21:02  |  Mark Lincoln 02/10/08
      17.   A simple reason 21:08  |  Mark Lincoln 02/10/08
      18.   #11 Mark Lincoln, that is good news, isn`t it? 21:16  |  Mark B. 02/10/08
      19.   For Mark Lincoln # 15 23:16  |  Clickfool 02/10/08
      20.   Mark B. - not really 01:45  |  Mark Lincoln 03/10/08
      21.   Clickfool - the Veep Debate 01:48  |  Mark Lincoln 03/10/08
      22.   Then they learned nothing from Airline deregulation 01:53  |  Mark Lincoln 03/10/08
      23.   Alicia - sure is 01:55  |  Mark Lincoln 03/10/08
      24.   In 1929 Wall Street and a laissez-faire 02:43  |  Mark Lincoln 03/10/08
      25.   pretty soon china will be paying back all the money they have 17:05  |  glenna 03/10/08
     Read & React
    ADL: Financial crisis sparking anti-Semitic upsurge on Internet
    Responses: 147
    Yoel Marcus: Israel won't top agenda for either McCain or Obama
    Responses: 11
    Claude Kandiyoti: A red line is needed between Jews, Israel
    Responses: 33
    Hezbollah: Ghajar, Shaba Farms will soon be liberated
    Responses: 33
    Daniel Levy: Over to you, Livni
    Responses: 1
    Amos Schocken: Why did Olmert wage war on the Supreme Court?
    Responses: 3


    More Headlines
    13:18 Hezbollah: Ghajar, Shaba Farms will soon be freed
    14:58 Biden: Bush Mideast policy a failure; Palin: Mideast will top our agenda
    14:54 OPINION / Israel won't top the agenda for Obama or McCain
    15:45 Syria denies UN nuclear watchdog access to military sites
    14:31 Settlers clash with rabbis guarding Palestinian olive harvest near Hebron
    10:11 From The Fringe, Post II / Israel and modern-day slavery
    13:30 NEW ON HAARETZ.COM / Play the news: Build your own Israeli government
    07:16 ADL: Financial crisis sparking anti-Semitic upsurge on Internet
    17:03 Astronaut Ilan Ramon's diary put on display in Jerusalem
    14:12 El Al plane bound for Tel Aviv returns to Beijing after bird strike
    07:22 Marines '83 Beirut chief: Mughniyeh killing 'overdue justice'
    07:24 After outpost evacuation, settler youth say 'don't mess with us'
    16:48 Ramallah real estate boom sends prices skyrocketing
    14:13 Rightists accuse Shin Bet of provoking attack on Prof. Sternhell
    00:53 VIDEO / Comic tells U.S. Jews to make sure their bubbes vote Obama
    06:50 French panel to probe shooting of Palestinian boy Mohammed al-Dura in 2000
    Previous Editions
    Special Offers
    Advertisement
    Fattal Hotel Chain
    Perfectly located hotels on best resorts of Israel.
    Dial 013 for your long-distance calls
    and get all your money back
    US CITIZENS
    Vote for real change. Request your ballot today!
    Eldan Rent a Car
    Israel's leading car rental company offers you a 20% discount on all online reservations
    Jewish Singles Personal Ads
    Find the love of your life on JDate.com
    Israel's Premier Real Estate Website
    www. israel-property.com
    Hebrew Summer courses
    From $39.95
    Junkyard
    Junk a car - get free towing nationwide and a tax-deductible receipt
    Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |
    Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel
    birthright Israel | Search engine marketing
    Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.
    © Copyright  Haaretz. All rights reserved