Bush Promises Deal on Bailout Proposal
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In televised statement, US president acknowledges there are still disagreements that must be resolved, but says 'something substantial must be done'
U.S. President George Bush says lawmakers must move quickly to bail-out troubled financial firms that threaten to stall the U.S. economy. VOA White House Correspondent Scott Stearns reports, opponents of the plan criticize both its cost and government intervention in the private sector.US President George W. Bush speaks on status of Congressional financial rescue package negotiations outside Oval Office, 26 Sep 2008Facing opposition from lawmakers in his own political party, President Bush says he is confident that Republicans and Democrats will rise to the occasion and come together on a substantial rescue plan."There are disagreements over aspects of the rescue plan," he noted. "But there is no disagreement that something substantial must be done. The legislative process is sometimes not very pretty, but we are going to get a package passed."President Bush wants Congress to spend as much as $700 billion to buy up mortgage-backed securities that are making banks reluctant to lend money to businesses and consumers. That lack of credit threatens to stall the U.S. economy.Mr. Bush says the government would hold those securities until markets recover then resell them to recoup some of the taxpayer money spent on the bail-out.That rescue plan is being held up by Republicans in the House of Representatives who say it amounts to a government take-over of private firms. They want an expanded insurance system to cover failing mortgage-backed securities.The breakdown in talks over the deal came hours after President Bush met Thursday with congressional leaders and the presidential candidates Democrat Barack Obama and Republican John McCain.Democrats blame McCain for inserting presidential politics into the process after he suspended his campaign and returned to Washington for talks on the bail-out. McCain says there are legitimate concerns about the plan's price.The breakdown in talks on the financial bailout comes as the investment bank J.P. Morgan purchased the assets of Washington Mutual Bank in the largest bank failure in American history.Federal regulators took control of Washington Mutual as the bank faced collapse under the weight of billions of dollars of debt from selling risky sub-prime mortgages to homeowners who later defaulted.
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JP Morgan Chase Buys Troubled Washington Mutual Bank
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Federal regulators move quickly, seizing troubled mortgage lender late Thursday and selling thrift's banking assets to US investment bank for nearly $2 billion
As U.S. lawmakers grappled over a $700 billion dollar bank bailout plan, one of the nation's largest banks - Washington Mutual Incorporated - collapsed under the weight of its enormous bad bets on the U.S. mortgage market. From Washington, VOA's Purnell Murdock reports on what is seen as the largest bank failure in U.S. history.Pedestrians walk past Washington Mutual Inc. branch in downtown Seattle, Washington (file photo)With financial markets reeling over the recent crisis on Wall Street, the collapse of Seattle-based Washington Mutual could not have come at a worse time.Federal regulators moved quickly, seizing the troubled mortgage lender late Thursday and selling the thrift's banking assets to U.S. investment bank J.P. Morgan for nearly $2 billion. The Federal Deposit Insurance Company, FDIC, insures Americans' bank deposits of up to $100,000. But it says because of the deal it will not have to use its assets to cover Washington Mutual's deposits. The FDIC had already spent billions of dollars in its takeover of IndyMac, which collapsed in July. Some analysts say a Washington Mutual failure could have used up half the money in the government insurance fund.J.P. Morgan Chase said it plans to close less than 10 percent of the two companies' branches. The bank has not yet decided which to close. Kelsey Wesley, a Washington Mutual employee says employees are nervous. But adds the company, commonly known as WaMu, has been good to them in the past. "I'm not gonna say that is not gonna happen but no matter what WaMu has a really impressive severance package and I think that's going to be carried on even if there is a merger," he said. John Graybill, another Washington Mutual employee said he is optimistic."Of course we are going to have some uncertainties and some questioning about what's going on. Have I been nervous? Sure. That's the nature of the whole beast," he said. "When a large company gets bought out you wonder about your job. Are heads gonna roll? You just don't know but we have faith in our bosses and the people upstairs." FDIC Chairwoman Sheila Bair says this will be a seamless transition for the bank's customers. She says there will be no interruption in services and bankers can expect business as usual.Washington Mutual has been saddled with billions of dollars of debt because it heavily invested in selling risky subprime mortgages to customers who later defaulted on them. This is J.P. Morgan's second purchase of a financial institution left vulnerable by the subprime mortgage crisis. It bought Bear Stearns for more than two-billion dollars earlier this year.
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McCain Resumes Campaign, Debate On
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Statement from Republican presidential candidate's campaign says there has been progress but that he will return to Washington after debate to work on final agreement
John McCain leaves meeting on Capitol Hill in Washington, 26 Sep 2008U.S. Republican presidential candidate John McCain has resumed his campaign and will take part in Friday night's presidential debate.McCain had said he would not attend the debate if a plan to bailout the troubled U.S. financial sector was not in place.A statement by McCain's campaign Friday said there has been progress, but that McCain would return to Washington after the debate to work on a final agreement.Talks at the White House with U.S. President George Bush, McCain, Democratic presidential nominee Barack Obama and other leading lawmakers fell apart late Thursday. Afterwards, Obama told CNN television he worried that injecting presidential politics into negotiations will do more harm than good.Democratic lawmakers have accused McCain of hurting the process and using the financial crisis to boost his campaign.In turn, the McCain campaign accused Obama of turning the critical White House meeting into a political shouting match.Sen. Barack Obama Obama had said he would attend the debate in the city of Oxford, in the southern state of Mississippi even if a deal was not in place.McCain and Obama are scheduled to debate foreign policy at tonight's event at the University of Mississippi. McCain announced Wednesday he was putting his campaign on hiatus to take part in the negotiations in Washington on the Bush administration's financial rescue plan. Obama said Thursday that with the election just 40 days away, the U.S. economy in crisis and the nation fighting two wars abroad, the American people deserve to hear directly from the two candidates on how they intend to lead the country.
Some information for this report was provided by AFP, AP and Reuters.
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Pakistani Military: 1,000 Militants Killed Near Afghan Border
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Meanwhile, police say three suicide bombers blew themselves up after police raided their hideout in the commercial capital, Karachi
Pakistani military officials say 1,000 militants have been killed in a month-long operation along the Afghan border.Major General Tariq Khan told reporters Friday that at least five militant commanders, including foreigners, were among those who have been killed in the Bajaur tribal region. Khan said more than 60 Pakistani troops also have been killed in Bajaur since the military launched its offensive against Taliban and al-Qaida militants in August. The general said militants based in the tribal area have launched attacks against troops in neighboring Afghanistan. He added that if the militants lose Bajaur, they will lose everything. Pakistan is under pressure from Afghanistan and the United States to control militants operating in its border regions.Pakistani officials, reporters visit terrorist hideout in Karachi, 26 Sep 2008Also Friday, police say three suicide bombers blew themselves up after police raided their hideout in the commercial capital, Karachi.Authorities say the militants were believed to be members of extremist group Laskhar-e-Jhangvi with links to al-Qaida. Police seized explosives from the badly damaged home and said the men were planning an attack on Karachi.Pakistan has been on high alert since a suicide bomber set off a massive truck bomb outside a luxury hotel in the capital, Islamabad, last week. Fifty-three people were killed.And Pakistani authorities say a bomb blast derailed a train in central Punjab province Friday, killing at least six people - including children. No one has claimed responsibility for the attack.
Some information for this report was provided by AFP and AP.
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South Korean Foreign Minister says Nuclear Talks with North at Risk
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Analysts say North's moves to resume activity at main nuclear reactor could end up isolating and impoverishing country even further
South Korea's chief diplomat says a diplomatic process aimed at getting
rid of North Korea's nuclear weapons is at risk if Pyongyang continues
on its current path. As VOA's Kurt Achin reports from Seoul, the
North's moves to resume activity at its main nuclear reactor could end
up isolating and impoverishing the country even further. South
Korean Foreign Minister Yu Myung-hwan said Friday North Korea is
putting at risk the diplomatic effort that has been some five years in
the making.Referring to a six-nation talks process aimed at
ending North Korea's nuclear weapons, Yu says we are in a difficult
situation where we may have to return to square one.In this 27 Jun 2008 file photo provided by China's Xinhua News Agency, ruins of Yongbyon nuclear complex's cooling tower are seenSince 2003,
South Korea has joined the United States, Russia, China, and Japan in
offering the North incentives to end its nuclear weapons programs.
North Korea signed an agreement last year to declare those programs and
began disabling its main nuclear facility at Yongbyon, with much
broader disarmament steps to come in the future.However, this
month North Korea said it was in the process of restarting Yongbyon,
and it ejected international inspectors and their surveillance
equipment from the plant's reprocessing facility. Foreign Minister Yu says the North's actions may have a political angle.He
says it is possible that the North's decision to reverse its
disablement is a strategy linked to the upcoming U.S. presidential
election.Michael Green is a former national security advisor to
President Bush, and is now affiliated with Republican presidential
candidate John McCain.He told a forum in Seoul Friday he thinks
it is very unlikely there will be progress in the six nation talks
until the U.S. election is resolved. He also says there is a good
chance North Korea is considering steps to take to try to raise its
bargaining leverage with the new administration."Incrementally
they may try to move toward reprocessing of the remaining spent fuel
rods... and they may also try rebuilding their five megawatt reactor
and other facilities. And I believe we should signal to them very
clearly that if they go down that path... the situation for them will
be worse," he said.North Korea tested a nuclear weapon two
years ago, causing unanimous support for a strict sanctions resolution
at the United Nations. Green points out the international community
has not seriously implemented the resolution, because the North
returned to talks. He says that could change, if North Korea continues
to reverse its nuclear promises.
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Iraqi President Urges UN Members to Drop Saddam-Era Sanctions
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Jalal Talabani caps a parade of General Assembly speakers Thursday that also included, among others, leaders of Macedonia and Armenia
Iraq's president Jalal Talabani, touting security gains in that country, has appealed to nations around the world to open diplomatic missions in Baghdad and drop sanctions left over from the Saddam Hussein era. The Iraqi leader was among speakers Thursday in the U.N. General Assembly's general debate. VOA's David Gollust reports from our U.N. bureau.Iraqi President Jalal Talabani addresses UN General Assembly, 25 Sep 2008The Iraqi president says his government still has a long road ahead in its efforts to restore full peace to the country. But in his U.N. speech, he highlighted incremental successes by Iraqi security forces in Baghdad, Basra, Mosul, and Diyala provinces, and said the government aims to take over security responsibilities for the entire country from U.S.-led multi-national troops by the end of this year.Accordingly, Mr. Talabani appealed to the world community to recognize the security gains by reopening or establishing diplomatic missions in Baghdad and by increasing the level of representation at the handful of foreign missions already functioning there.Citing the Baghdad government's commitment to democratic rule and non-interference in neighboring countries, Mr. Talabani urged U.N. members to lift leftover sanctions from the Saddam Hussein era under Chapter Seven of the U.N. charter, and drop or ease compensation claims stemming from actions of the former dictator."Iraq no longer threatens international peace and security," he said. "And therefore we call on the international community to adopt measures so that Iraq will no longer be subject to Chapter Seven of the Charter of the United Nations. We call on the international community to take all the measures needed to lift all actions undertaken by the Security Council against Iraq based on this chapter with regard to compensation."The Iraqi president capped a parade of General Assembly speakers that also included, among others, the leaders of Macedonia and Armenia.Branko Crevenkovski addresses UN General Assembly 25 Sep 2008In his speech, Macedonian President Branko Crevenkovski accused Greece of violating a 1995 understanding with his government by blocking Macedonia's bid to join NATO at the alliance's Bucharest summit last April.The two countries have been locked in a dispute over the name of the former Yugoslav republic, with Greece contending that the use of Macedonia implies a claim to its northern province of the same name.Mr. Crevenkovski called the Greek contention absurd but said his government remains committed to a reasonable resolution of the dispute under the auspices of U.N. envoy Matthew Nimitz."The Republic of Macedonia is ready to accept a fair compromise and reasonable solution which is not going to deny our national, cultural identify," he said. "It is understandable that we are not ready to give consent to just any kind of solution in the case when such an important national issue is in question. If the reason for our integration into international institutions is to contribute to the stabilization of our state, then we should not allow ourselves to be humiliated and to experience internal destabilization due to ill compromise."Serzh Sargsyan addresses he United Nations General Assembly, 25 Sept. 2008In his message, Armenian President Serzh Sargsyan expressed concern about the possible advent of a second Cold War because of U.S. Russian-tensions stemming from last month's Georgia crisis. He also said his government continues to actively negotiate with Azerbaijan in the framework of the OECD's Minsk group over the status of Nagorno-Karabakh, an ethnic-Armenian enclave within Azerbaijan.Mr. Sargsian said the result should be independence for Nagorno-Karabakh, an outcome widely opposed by members of the international community.The president of the island state of Sao Tome and Principe off the coast of West Africa, Fradique Bandera Melo de Menezes, was one of several leaders to urge serious international efforts to reverse global warming.He said in the last 10 years, giant ocean waves have begun to inundate coastal highways, isolating key regions of the low-lying country.
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Top Bush Administration Officials Discuss Legality of Harsh Interrogations
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US Senate Armed Services Committee holds hearing on controversial issue, involving secretary of state, defense secretary, attorney general
The chairman of the U.S. Senate Armed Services Committee says top Bush administration officials in 2002 and 2003 discussed the legality of harsh interrogation techniques used on terrorism suspects. At a hearing Thursday, Senator Carl Levin said Secretary of State Condoleezza Rice provided details of the discussions to his panel. VOA's Deborah Tate reports from Capitol Hill.Secretary Rice's written statements to the Senate Armed Services Committee are believed to be the first such acknowledgment that members of President Bush's Cabinet were involved in discussions over the legality of the harsh interrogation methods.Senator Carl Levin (file photo)Senator Levin, a Michigan Democrat, released the documents at Thursday's hearing."Secretary of State Condoleezza Rice, who was then the National Security Advisor to the president, responded on September 12, just a few weeks ago, that in 2002 and 2003, there were meetings at the White House where a specific CIA interrogation techniques were discussed," Levin said.Senator Levin said the statements note that former Defense Secretary Donald Rumsfeld and former Attorney General John Ashcroft were involved in the discussions.Levin said Rice's legal adviser, John Bellinger, also submitted statements to the committee. Bellinger told the panel he had expressed concern that the interrogation techniques comply with applicable U.S. law, including U.S. international obligations.In her statement, Rice said she was told that the techniques, which included waterboarding - or simulated drowing - were deemed not to cause significant physical or psychological harm. The techniques were used to train U.S. troops to resist enemy interrogation.But a military interrogation expert, retired Air Force Colonel Steven Kleinman, who had witnessed some of the harsh interrogations, told the committee that he called his then commander, Colonel Randy Moulton, to express concern about the methods being used."I told him that, in my view, those were violations of the Geneva Conventions and they were not authorized, and we should not do them," Col. Kleinman said.Kleinman said Moulton told him the techniques were approved by Pentagon lawyers.In related action, the Senate Judiciary Committee authorized Chairman Patrick Leahy to issue subpoenas to Justice Department officials to hand over legal opinions that approved the harsh interrogation techniques. The vote was on a 10 to 9 party-line basis, with Democrats in the majority.Senator Dianne Feinstein, a California Democrat, was among those who voted in favor of the authorization."Deep, dark mistakes - and I put that charitably - have been made, and it is this committee's obligation to see that they never happen again," Feinstein said.Thursday's Judiciary Committee vote allows Senator Leahy, a Vermont Democrat, to issue subpoenas at any time, even if Congress is not in session. A committee spokeswoman says Leahy would consult with panel members about whether and when to issue any subpoenas.The Bush administration maintains that waterboarding used by the CIA against three top al-Qaida detainees was legal, and that the practice was ended in 2006.
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Malaysian Ruling Coalition Postpones Leadership Vote Until March
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Prime minister declined to squash speculation announcement meant he would step down from office, instead telling reporters delay meant to help smooth an early transition
Malaysia's ruling party has postponed a crucial December election to choose its leaders. VOA correspondent Nancy-Amelia Collins in Jakarta has more.The United Malays National Organization, or UMNO, the biggest party in the coalition that has ruled Malaysia since independence, announced Friday it would postpone its December leadership election until March.Malaysian Prime Minister Abdullah Ahmad Badawi speaks reporters in Kuala Lumpur, 26 Sep 2008Prime Minister Abdullah Ahmad Badawi declined to squash speculation the announcement meant he would step down from office, instead telling reporters the delay was meant to help smooth an early transition.Abdullah had earlier announced he would hand power to his deputy Najib Razak in 2010 instead of the agreed 2012 after facing dissent from within his party and from opposition leader Anwar Ibrahim.Abdullah told reporters he would not make a final decision on whether or not to stay in power until October 9, when party members meet to start the nomination process. The elected UMNO president becomes the prime minister.Anwar Ibrahim's opposition coalition won a third of parliament in the March elections - the first time the ruling party lost its majority since independence more than 50 years ago.Since then the pressure has mounted for Abdullah to step down.Anwar has repeatedly said he has enough defectors from the ruling coalition to topple the government, but several deadlines he gave have come and gone without results. Political analyst Khoo Kay Peng says there are likely several reasons for the postponed elections."Definitely Abdullah cannot even handle having dissent within his party. Definitely it has partly to do with Anwar Ibrahim as well. I think a number of disgruntled members in UMNO perhaps would want to look at the outcome of the election before making their plan," said Khoo. "To go with Anwar or whether to stay with the coalition."Khoo also says Abdullah may be biding his time by postponing the elections."Perhaps this will allow some of these people, who may be thinking of defecting - a chance to really decide once and for all," added Khoo. "So by postponing it to March, these people will have no choice but to hold their position until the March election and Abdullah is hoping that perhaps this will be a very good cooling period."Anwar, a former deputy prime minister, was ousted from power more than 10 years ago after being imprisoned for sodomy - a crime in Malaysia - and corruption, charges he says were politically motivated.Anwar is now fighting another charge of sodomy which he denies and says has been orchestrated by the government to keep him from taking power.
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McCain, Obama Call for Renewable Energy, Cuts in Greenhouse Gas Emissions
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Candidates spoke at Global Initiative forum hosted by former US President Bill Clinton in New York City
A global forum hosted by former President Bill Clinton focused on energy and climate change during its second day Thursday. Democratic Presidential candidate Barack Obama and his Republican rival John McCain, outlined their thoughts on U.S. energy needs and global warming to the bipartisan group before traveling to Washington to meet with President Bush on the U.S. financial crisis. Victoria Cavaliere has more on the conference from VOA's New York Bureau.
Bill Clinton speaks before a panel discussion during the Clinton Global Initiative annual meeting in New York, 24 Sep 2008 Thursday's panel at the annual Clinton Global Initiative in New York City focused on how to accelerate progress in developing clean energy and reducing global greenhouse gas levels, which have been blamed for climate change. The panel stressed the need for energy efficiency and renewable power sources, like wind and solar energy, as well as clean modes of transportion and local leadership.
Senator John McCain was first to address the panel in a speech he amended to focus heavily on the U.S. financial crisis.
He said rising fuel costs and the dangers of global warming are of paramount concern to the American people. He expressed hopes that innovation will allow the United States to end its reliance on oil and natural gas.
"To make the great turn away from carbon-emitting fuels, we will need all the inventive genius of which America is capable. We will need as well an economy strong enough to support our nation's great shift toward clean energy. Global warming presents a test of foresight, of political courage and of the unselfish concern that one generation owes to the next," he said.
Speaking via satellite from Florida, Barack Obama also began his talk by calling for decisive action in Washington to deal with the economic crisis. He said poverty, extremism and disease threaten the global economy and security.
Obama said it is time for Americans to take the lead in reducing greenhouse gas emissions. He called on the United States to cut carbon dioxide and other emissions by 80 percent by mid-century.
"Abroad, the United States must get off the sidelines. We'll reach out to the leaders of the biggest carbon emitting nations and ask them to join a new Global Energy Forum to lay the foundation for the next generation of climate protocols. We'll build an alliance of oil-importing nations and work together to reduce our demand, and break the grip of OPEC [the Organization of the Petroleum Exporting Countries]. And as we develop clean energy, we should share technology and innovations with the nations of the world," he said.
Both presidential candidates agreed that poverty, climate change and disease present huge challenges around the globe.
McCain and Obama also said they believe that a greater international effort is needed to fight disease and provide education and health care among children.
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Hurricane Relief Effort Revives Debate Over US Cuba Policy
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Cuban-Americans seek lifting of US policy to allow more remittances to aid hurricane relief in Cuba
Miami's Cuban American community is rallying to gather donations and financial support to aid hundreds of thousands of Cubans affected by recent hurricanes. But aid organizers, say there are too many hurdles to delivering aid, because of decades of US restrictions and sour ties between the two nations. However, many Cuban American leaders are renewing calls to end some U.S. restrictions and improve relations with people in the Communist-led nation. VOA's Brian Wagner reports from Miami.Aid is pouring in from Cuban exiles and other Miami communitiesDonations pour in from Cuban exiles and other Miami communities to help hurricane survivors in Cuba. The headquarters of the Daughters of Charity is at the center of the relief drive. "The Daughters of Charity is one of five groups that is authorized to bring humanitarian aid into Cuba," according to spokesman Erick Aracil. "We are only allowed to bring food and medicine."So far, the Catholic group has sent several containers to Cuba, which tightly controls imports. Other shipments have arrived from Venezuela and Russia. But Cuba has rejected similar offers from the U.S. government, saying Washington should instead lift a ban on credit sales to the island. On a recent trip to Miami, Commerce Secretary Carlos Gutierrez repeated an offer to provide more than $5 million in supplies, and he accused Havana of playing politics over the U.S. trade embargo.
Commerce Secretary Carlos Gutierrez"We don't understand," Gutierrez said. "What can be so important that it is bigger than the well-being of people in Cuba? There are people in Cuba who are suffering."Many Cuban Americans still support the 46-year-old embargo. But there is growing opposition to restrictions imposed by the Bush administration on remittances and family visits to Cuba. Opponents say putting more cash in Cuban hands will help families in trouble. Cuban family rights activist Alvaro Fernandez has opposed the limits since they were passed in 2004."It's a perfect storm, because of the situation, people who would not have been in favor of such a thing are in favor of it right now," he said. "So why not do it? Now is a good time just because of the need. There is a real need, and it is going to get worse."Relief groups say more than two million Cubans may have lost their homes in the recent hurricanes. The storms also ripped up crops, flooded businesses and destroyed roads and power lines. Opponents of the U.S. limits say opening cash lines would speed rebuilding in Cuba.Commerce Secretary Gutierrez says the focus now should be on getting aid to Cubans, not policy issues.Gutierrez believes getting aid to Cubans, and not politics, is the most important issue"To just say anyone can travel and send as much money as they want, we don't see how that political debate helps. All we want to do is help the Cuban people," he said.Even with a temporary lifting on remittance limits, there is some concern about what impact U.S. dollars can have, says long-time exile Nerida Otero."We send money but that is not going to fix the situation, because there is nothing to buy. So we buy food to bring here to send to Cuba," Otero said.With less than two months before U.S. elections, Cuban exiles say it may be the next president's job to reconsider U.S. policy toward Cuba.
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