BAIL-OUT FEARS RETURN TO MARKETS !
Monday's falls wiped out Friday's gains in the US.
Concern returned to the US stock market as US Treasury Secretary Henry Paulson faced tough questions about his $700bn (£382bn) financial rescue plan.
The Dow Jones industrial average fell 0.8% as Mr Paulson finished his testimony at a Congressional hearing. Earlier the index was up 0.7%.
Investors worried the plan could face more opposition than had been expected.
Mr Paulson has urged Congress to move quickly to pass a package of measures to end the financial turmoil.
Share prices in Europe and Asia also declined amidst uncertainty about the effectiveness of the bail-out.
Despite positive reaction soon after the plan was announced, doubts over how soon the rescue plan could be applied have emerged from both the Democrats and Republicans.
Mr Paulson and others on the Senate Banking Committee met tough questions at a Congressional hearing on Tuesday.
Senators from both parties voiced concerns that taxpayers would be paying the price of mistakes made by banks.
Until Lehman brothers collapsed, Japanese financial institutions were pretty confident - BBC's Chris Hogg in Tokyo.
Concern returned to the US stock market as US Treasury Secretary Henry Paulson faced tough questions about his $700bn (£382bn) financial rescue plan.
The Dow Jones industrial average fell 0.8% as Mr Paulson finished his testimony at a Congressional hearing. Earlier the index was up 0.7%.
Investors worried the plan could face more opposition than had been expected.
Mr Paulson has urged Congress to move quickly to pass a package of measures to end the financial turmoil.
Share prices in Europe and Asia also declined amidst uncertainty about the effectiveness of the bail-out.
Despite positive reaction soon after the plan was announced, doubts over how soon the rescue plan could be applied have emerged from both the Democrats and Republicans.
Mr Paulson and others on the Senate Banking Committee met tough questions at a Congressional hearing on Tuesday.
Senators from both parties voiced concerns that taxpayers would be paying the price of mistakes made by banks.
Until Lehman brothers collapsed, Japanese financial institutions were pretty confident - BBC's Chris Hogg in Tokyo.
They also said it was crucial not to rush through the bail-out, without carefully considering how it would work.
Richard Shelby, a senior republican on the Senate Banking Committee said: "I have long opposed government bail-outs for individuals and corporate America alike."
And Senator Chris Dodd, a Democrat and the committee's chairman, said the "economic maelstrom" stemmed from a mixture of "private greed and public regulatory neglect".
In prepared remarks, US Federal Reserve head Ben Bernanke said: "Action by Congress is urgently required to stabilize the situation and avert what could otherwise be very serious consequences for our financial markets and our economy."
The White House has said Congress must back the rescue plan to stop wider economic harm.
On the European markets, the UK's FTSE 100 closed down 1.6%, France's Cac 40 fell 1.7%, while in Germany the Dax ended 0.5% lower.
Earlier in Asia, Hong Kong's Hang Seng index ended nearly 4% lower. Japan's market was closed for a public holiday.
BBC NEWS REPORT.
Labels: US Stock-Markets Gains Bail-out Congress Europe Asia Rescue Tokyo Lehman-brothers Banks Mistakes
posted by jackaranda at 8:34 pm
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