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U.S. Treasury Secretary Henry Paulson speaks at a news conference after the G7 Ministerial meeting in Washington October 10, 2008. The world's rich nations vowed on Friday to take all necessary steps to unfreeze credit markets and ensure banks can raise money but they offered no collective course of action to avert a deep global recession. (Yuri Gripas/Reuters)

Gov't eyes plan to take ownership stakes in banks

1 hour, 28 minutes ago

WASHINGTON - Treasury Secretary Henry Paulson told international leaders on Sunday that isolationism and protectionism could worsen the spreading financial crisis. With a new trading week dawning, U.S. lawmakers urged quick action by the Bush administration on measures to make direct purchases of bank stock to help unlock lending.

  • European Commission President Jose Manuel Barroso, left, European Central Bank President Jean-Claude Trichet, center, and Eurogroup President Jean-Claude Juncker, right, arrive at the financial crisis summit gathering Eurogroup heads of state and government at the Elysee Palace in Paris, Sunday, Oct. 12, 2008. Countries that use the euro will temporarily guarantee future bank debt to encourage lending and ease the credit crunch, according to a draft statement under discussion by European leaders Sunday. (AP Photo/Charles Platiau, Pool)
    Euro nations to guarantee bank refinancing 1 hour, 49 minutes ago

    PARIS - Nations in Europe's single-currency zone agreed Sunday to temporarily guarantee bank refinancing and pledged to prevent banks failing as part of a raft of emergency measures designed to get credit flowing again.

  • Trader Fred Demarco works on the floor of the New York Stock Exchange, Friday Oct. 10, 2008. Wall Street capped its worst week ever with a wild session Friday that saw the Dow Jones industrials rocket within a 1,000 point range before closing with a relatively mild loss and the Nasdaq composite index actually end with a modest advance. (AP Photo/Richard Drew)
    Investors face more uncertainty as bailout widens 40 minutes ago

    NEW YORK - Investors agonizing over whether the stock market is bottoming out or about to extend its precipitous decline face more uncertainty this week as they await action on the government's rapidly expanding effort to pull the financial system from the brink.

  • ADVANCE FOR MONDAY OCT. 13; graphic shows percentage of Americans by the value of their debt;
    Is the era of easy credit over for the long haul? Sun Oct 12, 3:22 PM ET

    An inflatable gorilla beckoned from the roof of Don Brown Chevrolet in St. Louis, servers doled out free bowls of pasta and a salesman urged potential customers to "come on up under the canopy and put your hands on" a new set of wheels.

  • A farmer carries the soybean straws to his cart at a field in Shenyang in northeast China's Liaoning province, Sunday, Oct. 12, 2008. China's ruling Communists are meeting to discuss agricultural reforms, as the government seeks to maintain growth and guard against the effects of the global economic crisis. The meeting is expected to give farmers formal permission to lease or transfer their land, measures that have already grown common as rural workers move to the city. (AP Photo)
    China looking inward as foreign economies slow Sun Oct 12, 11:20 AM ET

    BEIJING - China's ruling Communist Party on Sunday said it would seek to expand its massive internal market to counter the global economic slowdown that has reduced international demand for Chinese goods.

  • Republican vice presidential candidate, Alaska Gov. Sarah Palin waves as she arrives for a campaign rally in Johnstown, Pa., Saturday, Oct. 11, 2008. (AP Photo/Keith Srakocic)
    Palin has mixed record as fiscal conservative Sun Oct 12, 2:15 PM ET

    ANCHORAGE, Alaska - Alaska Gov. Sarah Palin, the Republican nominee for vice president, bills herself as a fiscal conservative. But her record is mixed: She increased to historic proportions the annual bonus each Alaskan receives from the government yet gained prominence by raising taxes on the oil industry.

  • World Bank Group President Robert B. Zoellick, center, listens as International Monetary Fund Managing Director Dominique Strauss-Kahn, right, briefs reporters at IMF headquarters on efforts to heal the economy, in Washington, Sunday, Oct. 12, 2008. He is joined at far left by Mexico's Secretary of Finance Augustin Carstens. (AP Photo/J. Scott Applewhite)
    World Bank to protect poor from economic turmoil 1 hour, 35 minutes ago

    WASHINGTON - The World Bank agreed Sunday to help developing countries strengthen their economies, bolster their financial systems and protect the poor against the financial turmoil in international markets.

  • In this July 11, 2008, file photo, a giant glacier is seen making its way to the waters of Croaker Bay on Devon Island. Global economic woes could halt efforts to control global warming. Economic troubles will make it tougher to pass legislation capping heat-trapping gases and could delay when reductions would start, according to lawmakers, environmentalists and industry representatives. (AP Photo/Jonathan Hayward, CP, File)
    Efforts on global warming chilled by economic woes Sun Oct 12, 10:22 AM ET

    WASHINGTON - The economic free fall gripping the nation may bring down one of the main environmental objectives: capping the greenhouse gases that are blamed for global warming.

  • In this photo provided by Walt Disney, A chihuahua is served dinner in a scene from the movie, 'Beverly Hills Chihuahua.' The little dog brought in big audiences this weekend, making 'Beverly Hills Chihuahua' the top box office hit. Studio estimates say the Disney comedy made a 29-million dollar debut. (AP Photo/Walt Disney, Daniel Daza)
    'Chihuahua' fetches $17.5M, remains top movie dog Sun Oct 12, 4:07 PM ET

    LOS ANGELES - An adorable talking dog remained just the sort of escapist movie hero audiences wanted after a week of awful economic news. Disney's family comedy "Beverly Hills Chihuahua," with Drew Barrymore providing the voice of the pooch, was the No. 1 flick for the second-straight weekend with $17.5 million, raising its 10-day total to $52.5 million, according to studio estimates Sunday.

  • Bailout managers may be buying own securities Sun Oct 12, 10:28 AM ET

    WASHINGTON - The government's plan to make sure private managers of a $700 billion bailout plan are free of conflicts of interest is weak, according to some critics, and allows too much room for abuse.

  • Ithaca, NY, wants to be America's 1st podcar city Sun Oct 12, 3:34 PM ET

    ITHACA, N.Y. - The thought of a driverless, computer-guided car transporting people where they want to go on demand is a futuristic notion to some.

  • Nobel Laureate in Economics Eric S. Maskin from the United States laughs during a news conference in Vienna, on Thursday, Oct. 2, 2008. Maskin is in Austria for the Viennese nobel laureates seminar. (AP Photo/Lilli Strauss)
    Amid the meltdown, economics Nobel no easy pick Sun Oct 12, 11:22 AM ET

    STOCKHOLM, Sweden - If history is any guide, this year's Nobel economics prize will award the developers of economic theories that have had the time to take root, grow and prove resilient.

  • American flags flutter in the wind in front of the General Motors Corp. headquarters in downtown Detroit, Michigan in this November 7, 2007 file photo. General Motors is in preliminary talks about a possible merger with fellow U.S. automaker Chrysler, The New York Times reported late on October 10, 2008. The talks between GM and Cerberus Capital Management, the private equity firm that owns Chrysler, began more than a month ago and are not certain to produce a deal, the paper said. REUTERS/Rebecca Cook/Files (UNITED STATES)
    Analysts: GM would need cash to acquire Chrysler Sun Oct 12, 5:13 AM ET

    DETROIT - For General Motors Corp. to acquire Chrysler LLC and all of its warts, GM would have to get desperately needed cash as part of the deal. Lots of it, according to industry analysts.

  • Wales rides a coal renaissance Sun Oct 12, 11:17 AM ET

    CWMGRACH, Wales - Deep under a pine-covered mountain, men clamber into red overalls and heavy boots, strap on lamps and attach sensors that check gas levels.

  • Democratic presidential candidate Sen. Barack Obama, D-Ill., speaks at a rally in front of the Mayfair Diner in Philadelphia, Saturday, Oct. 11, 2008.(AP Photo/Alex Brandon)
    Tax rebate, food stamp money possible in aid plan Sun Oct 12, 5:12 AM ET

    WASHINGTON - After consulting with Barack Obama, Democratic leaders are likely to call Congress back to work after the election in hopes of passing legislation that would include extended jobless benefits, money for food stamps and possibly a tax rebate, officials said Saturday.

  • Tim Clark, President of Emirates Airline, left, talks to Emirates officials during a visit of new Terminal 3 of Dubai Airport in Dubai, United Arab Emirates, Thursday, Oct. 9, 2008. The new terminal is scheduled to open for the Emirates travelers from October 14, 2008. (AP Photo/Kamran Jebreili)
    Emirates officials say nation's banks are strong Sun Oct 12, 7:01 AM ET

    DUBAI, United Arab Emirates - Officials in the United Arab Emirates say the country's financial institutions remain healthy despite growing fears the global credit crisis will hurt the booming Gulf economy.

  • International Monetary Fund Managing Director Dominique Strauss-Kahn, right, speaks to reporters at IMF headquarters on efforts to heal the economy, in Washington, Saturday, Oct. 11, 2008. He is joined at left by Egyptian Finance Minister Youssef Boutros-Ghali who has been selected as the new Chairman of the International Monetary and Financial Committee, which sets the IMF's political direction and overall policy priorities. (AP Photo/J. Scott Applewhite)
    IMF calls for vigilance in fighting credit crisis Sat Oct 11, 7:04 PM ET

    WASHINGTON - The International Monetary Fund says it strongly endorses a plan by rich countries to fight the global credit crisis.

  • In this Tuesday, Oct. 7, 2008 file photo, artist Laura Gilbert displays her 'Zero Dollar' artwork in front of the New York Stock Exchange in New York. If you're looking to track down your missing money — figure out who has it now, maybe ask to have it back — you might be disappointed to learn that is was never really money in the first place. (AP Photo/Mark Lennihan)
    All that money you've lost — where did it go? Sat Oct 11, 12:41 PM ET

    NEW YORK - Trillions in stock market value — gone. Trillions in retirement savings — gone. A huge chunk of the money you paid for your house, the money you're saving for college, the money your boss needs to make payroll — gone, gone, gone.

  • The moon rises over the Qwest tower in Denver in this Thursday, Jan. 17, 2008 file photo. Qwest Communications International Inc. said early Saturday Oct. 11, 2008 it has reached a tentative agreement for a four-year contract with a union representing about 20,000 employees. Results of a ratification vote on the new agreement by union members are expected by Oct. 31. (AP Photo/David Zalubowski, FILE)
    Qwest reaches tentative agreement with union Sat Oct 11, 6:01 AM ET

    DENVER - Qwest Communications International Inc. says it has reached a tentative agreement for a four-year contract with a union representing about 20,000 employees.

  • Ford customer Kim Cloud, left, listens to Ford salesman James Blake, right, at a Ford dealership in San Leandro, Calif., Wednesday, Oct. 1, 2008. Tight credit, economic worries and high gasoline prices combined to crush the sales of U.S. and foreign automakers alike last month, with Ford Motor Co., Toyota Motor Corp. and Chrysler LLC all posting drops of more than 30 percent. (AP Photo/Paul Sakuma)
    Mazda says no decision on Ford's stake sale Sat Oct 11, 3:41 AM ET

    TOKYO - Mazda denied Saturday that a decision had been made by troubled Ford Motor Co. to sell its stake in the Japanese automaker but it didn't rule out a possible deal.