REYKJAVIK, Iceland Iceland nationalized its second-largest bank on Tuesday under day-old legislation and negotiated a euro4 billion ($5.4 billion) loan from Russia to shore up the nation's finances amid a full-blown financial crisis.
REYKJAVIK, Iceland Iceland nationalized its second-largest bank on Tuesday under day-old legislation and negotiated a euro4 billion ($5.4 billion) loan from Russia to shore up the nation's finances amid a full-blown financial crisis.
WASHINGTON The government is weighing a bold plan to buy massive amounts of unsecured short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.
SINGAPORE Oil prices rebounded to around $90 Tuesday in Asia after plunging to an 8-month low Monday on concerns a significant slowdown in global economic growth will undermine demand for crude.
Pedestrians are reflected on a stock indicator in Tokyo, Japan, Tuesday, Oct. 7, 2008. Japanese shares fell sharply in early trade Tuesday, briefly sending the country's benchmark index to its lowest level since December 2003.
SEOUL, South Korea Asian stocks were mixed Tuesday as a big interest rate cut in Australia helped spur recoveries in several regional markets, sparking hopes that other central banks will lower rates to help loosen the global credit crunch.
ROME A U.N. agency on Tuesday called for an urgent review of agriculture and biofuel subsidies and trade barriers, saying their removal would increase opportunities for developing countries to take advantage of rising biofuel demand.
In this undated file photo released by the Office of the Iowa Secretary of Agriculture shows Iowa Agriculture Secretary Bill Northey, in Des Moines, Iowa. Northey says it has been a trying year for Iowa farmers - record rain fall, record flooding, fitful weather throughout. T
DES MOINES, Iowa Like any farmer, Iowa Agriculture Secretary Bill Northey is eager to put the pains - and the rains - of 2008 behind him.
TOKYO Japan's central bank left its key interest rate unchanged Tuesday amid heightened anxiety that the U.S. credit crisis was quickly spreading from Wall Street to Europe and beyond.
SYDNEY, Australia Australia's central bank cut its official interest rate by a bigger-than-expected 1 percentage point Tuesday to ease credit concerns amid a global financial turmoil, cheering investors around the region and lifting Australian stocks into positive territory
Lehman Brothers Holdings Inc. Chief Executive Richard S. Fuld Jr., wearing tie, is heckled by protesters as he leaves Capitol Hill in Washington after testify before the House Oversight and Government Reform Committee Monday, Oct. 6, 2008, on the collapse of Lehman Brothers.
WASHINGTON The now-bankrupt investment bank Lehman Brothers arranged millions in bonuses for fired executives as it pleaded for a federal lifeline, lawmakers learned Monday, as Congress began investigating what went so wrong on Wall Street to prompt a $700 billion government bailout.
In this undated photo provided by the U.S. Treasury Department, of Treasury Department Assistant Secretary Neel Kashkari. Kashkari has been selected to head the Treasury's new Office of Financial Stability.
WASHINGTON Treasury Secretary Henry Paulson turned to a familiar source when he picked a director for the government's $700 billion bailout program: his former Wall Street firm, Goldman Sachs.
NEW YORK State tax revenue rose slightly in the second quarter, but revenue from sales tax, fuel tax and property tax all dropped compared to a year ago, according to a report released Tuesday. The report warned that states and cities would be forced to cut spending as tax revenues dropped further.
BAGHDAD Recurrent violence in oil-rich parts of Nigeria may provide a sobering lesson for oil companies hoping to work in Iraq - a place that is much more dangerous despite the fact that attacks are at their lowest level in more than four years.
BAGHDAD Recurrent violence in oil-rich parts of Nigeria may provide a sobering lesson for oil companies hoping to work in Iraq - a place that is much more dangerous despite the fact that attacks are at their lowest level in more than four years.
NEW YORK State tax revenue rose slightly in the second quarter, but revenue from sales tax, fuel tax and property tax all dropped compared to a year ago, according to a report released Tuesday. The report warned that states and cities would be forced to cut spending as tax revenues dropped further.
Ralph Massuci, right, watches the markets as works in the S&P 500 futures trading pit at the CME Group in Chicago, Monday, Oct. 6, 2008.
WASHINGTON The government's $700 billion rescue, aimed at rebuilding economic confidence, appeared to sound a global alarm instead on Monday, triggering a fearful international sell-off as the U.S. began work on a plan that investors feared would be too little and too late to stave off a worldwide recession.
A trader gestures as he works on the floor of Brazil's Mercantile and Futures Exchange in Sao Paulo, Monday, Oct. 6, 2008. Latin American stocks plunged Monday, led by a precipitous drop in Brazilian shares, on concerns that the world is descending into a severe economic slowdown that could devastate the region's commodities-based economies and set back hard won-gains for the poor.
NEW YORK Wall Street joined in a worldwide cascade of despair Monday over the financial crisis, driving the Dow Jones industrials to their biggest loss ever during a trading day. Even a big afternoon rally failed to keep the Dow from its first close below 10,000 since 2004.
WASHINGTON Fear and uncertainty were hot commodities in global markets Monday.
Minister for Economic and Business Affairs Lene Espersen, right, and Minister of Finance Lars Loekke Rasmussen, left, held a press conference at midnight between Sunday Oct. 5, and Monday Oct. 6, 3008, in Copenhagen, where the Danish government presented a deal guaranteeing all bank deposits for the country's lenders to augment stability amid turbulent markets. The Economy Ministry said that commercial lenders agreed to provide up to 35 billion kroner, or about US$6.4 billion (4.63 billion), over two years to a fund that will help insure account holders from losses.
LONDON Individual European governments issued a cascade of deposit guarantees to shore up their banks but fell short of any coordinated action Monday to deal with the crisis sweeping financial markets, even as stock markets crashed and the euro sank to its lowest level for over a year.
Traders buy and sell crude oil options at the New York Mercantile Exchange, Monday, Oct. 6, 2008. Oil prices fell to an eight-month low below US$90 a barrel Monday on speculation that the spreading financial crisis will exacerbate a global economic slowdown and cut demand for crude oil.
NEW YORK Oil prices plunged below $90 a barrel Monday, coming within reach of year-ago levels as a widening financial maelstrom spreads overseas and crimps global demand for energy.
European Central Bank President Jean-Claude Trichet, left, talks with Spain's Finance Minister Pedro Solbes at the start of the Eurogroup meeting in Luxembourg, Monday, Oct. 6, 2008. EU finance ministers are beginning two days of talks to plot a strategy to contain the turmoil sweeping European banks and to debate ways to increase oversight of the financial sector.
LUXEMBOURG European Central Bank President Jean-Claude Trichet called Monday for calm in the continent's jittery markets, saying they are overestimating risks and the euro-zone central bank stood ready to provide all the liquidity needed for as long as necessary.
NEW YORK Bank of America Corp. on Monday reported third-quarter results earlier than planned, revealing a wider-than-expected profit drop and plans to boost capital by selling $10 billion stock and halving its dividend.
NEW YORK The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of U.S. banks' mortgage assets.
NEW YORK Commodities prices tumbled broadly Monday on growing expectations that the financial crisis pummeling world markets will dramatically reduce global demand for energy and raw materials. Gold prices shot up as investors' faith in stock markets dimmed further, touching off a desperate dash for safe alternative investments.
The index value of the German stock index the DAX is seen at the stock market in Frankfurt, central Germany, Monday, Oct. 6, 2008. Germany's blue chip DAX stock market fell 4.7 percent in early trading Monday on continued troubling financial news.
LONDON Stock markets slumped worldwide Monday, some marking record one-day drops, on fears the global financial crisis will worsen and hit the wider economy despite bank bailouts in the U.S. and Europe.
People pass a Wachovia ATM, Monday, Oct. 6, 2008 in New York. Citigroup Inc. said Monday it has filed a complaint in New York Supreme Court against Wachovia, Wells Fargo and the directors of both companies seeking more than $60 billion in damages for interfering with the bank's planned takeover of Wachovia's banking operations.
NEW YORK Wachovia, Citigroup and Wells Fargo on Monday agreed to a standstill of all formal litigation activity - a sign that the banks and the Federal Reserve are working feverishly to reach an agreement over the fate of Wachovia.
WASHINGTON The Federal Reserve has granted approval for Japan's largest bank to purchase a stake in U.S. investment giant Morgan Stanley.
NEW YORK Starbucks Corp. is facing another complaint from the National Labor Relations Board alleging that the gourmet coffee chain engaged in unfair labor practices by firing a barista in Michigan.
Two people walk in front of Ebay Inc. headquarters in San Jose, Calif., Monday, Oct. 6, 2008. EBay Inc. said on Monday it will cut about 1,000 employees, reducing its work force by about 10 percent.
NEW YORK After a series of changes designed to draw more people to its online marketplace, eBay Inc.'s latest alteration is aimed at its own employees. The auction site operator said Monday it will cut about 1,600 jobs, 10 percent of its work force, in its largest round of dismissals ever.
In this April 18, 2006 file photo, a woman leaves the Eli Lilly and Company campus in downtown Indianapolis. Eli Lilly & Co. has agreed to spend more than $6 billion to fortify its cancer treatment portfolio by acquiring the biotechnology firm ImClone Systems Inc. in a deal that tops earlier offers from competitor Bristol-Myers Squibb Co.
INDIANAPOLIS Eli Lilly & Co.'s winning bid of more than $6 billion for cancer drugmaker ImClone Systems means a billion-dollar payday for former rival bidder Bristol-Myers and vindication for corporate raider and ImClone Chairman Carl Icahn.
The Mars Snackfoods company displayed samples of thier Dove Bar product at a news conference announcing the roll out of the expansion of Mars new manufacturing facility Monday, Sept. 29 2008 in Elizabethtown, PA. Mars Inc. has closed a deal to purchase of chewing-gum company Wm. Wrigley Jr. Co. to become the world's largest candy maker, Wrigley said Monday, Oct. 6, 2008.
HARRISBURG, Pa. Mars Inc. has closed a $23 billion deal to purchase chewing-gum giant Wm. Wrigley Jr. Co., the companies said Monday, making the combined business the world's largest candy maker.
NEW YORK Foodmaker Kraft Foods Inc. said Monday it is cutting 400 jobs in North America to reduce costs.
LOS ANGELES A man who was paid $2.5 million to be a plaintiff in a major lawsuit kickback scheme was sentenced Monday to three months in prison.
WHAT HAPPENED: Indianapolis-based drug maker Eli Lilly & Co. is buying the biotech firm ImClone Systems Inc. for more than $6 billion.
Shopper Dale Kaku looks over shoes near sale signs lined-up for the fall sale at REI, an outdoor retail store, Friday, Oct. 3, 2008, in Seattle. Relief on Wall Street over the hard-won passage of a $700 billion bailout package for the financial system apparently hasn't yet trickled down to the pubs, storefronts, car lots and malls of Main Street.
WASHINGTON A growing number of economists believe the country is on the brink of - or already in - its first recession since 2001 and that it will be longer lasting.
In this undated photo provided by the U.S. Treasury Department, of Treasury Department Assistant Secretary Neel Kashkari. Kashkari has been selected to head the Treasury's new Office of Financial Stability.
WASHINGTON The administration has selected a former Goldman Sachs executive to be the interim head of its $700 billion rescue effort for financial institutions.
In this undated photo provided by Ford Motor Co., of a MyKey. Starting next year, Ford Motor Co. will roll out a new feature, controlled by a computer chip in the key, that allows parents to limit the car's speeds to 80 mph and set a maximum volume for the audio system on some 2010 models.
DETROIT So you think junior is a little too lead-footed when he drives the family car? Starting next year, Ford Motor Co. will give you the power to do something about it.
WHAT'S UP: Retailers are expected to report dismal same-store sales figures on Wednesday, providing the first full gauge of consumer behavior since the financial meltdown began. The only bright spots will be discounters and wholesale clubs as customers focus on bare-bone essentials.
Lorraine Sanchez, right, and Van Ma, second from right, shop at a Wal-Mart Supercenter Thursday, Oct. 2, 2008, in Rosemead, Calif. Retailers' monthly sales reports for September, set to be released Wednesday, are expected to show how the financial meltdown has taken a toll on already fragile consumers.
NEW YORK The weak retail sales merchants had been expected to post for September will likely prove to have been a disaster as the financial meltdown that began halfway through the month sent shoppers into hiding.
In this Sept. 15, 2008 file photo, traffic passes a branch of the Bank of America in New York. Facing a lawsuit over deceptive mortgage practices, Bank of America Corp., said Monday, Oct. 6, 2008, it is agreeing to pay more than $8 billion to modify hundreds of thousands of loans to keep people from losing their homes.
SPRINGFIELD, Ill. Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. is agreeing to pay more than $8 billion to modify hundreds of thousands of loans to keep people from losing their homes.
A Citibank is shown in Mountain View, Calif., Friday, Oct. 3, 2008. Citigroup Inc. announced in a news released Saturday that state Supreme Court Justice Charles Ramos issued the order Saturday night Oct. 4, 2008.
NEW YORK The battle for control of troubled bank Wachovia tilted toward Wells Fargo Sunday as a state appeals court blocked a lower court ruling that had favored rival bidder Citigroup.
BERLIN Germany's finance minister said Monday he is considering creating a "shield" that would protect the country's entire financial sector, arguing it would not be possible to continue to address troubled financial institutions on a case by case basis.
LONDON European governments struggled to find a coordinated response to the crisis sweeping financial markets Monday, as countries one after the other announced sweeping deposit guarantees on their own to try and shore up their banks. Stock markets plunged.
Industry experts are beginning to unveil the list of what they believe will be hot toys for the holiday season. Here are a few that made both Timetoplaymag.com's "Most Wanted" list and Toy Insider's "Hot 20."
NEW YORK Will financial-market turmoil be the Grinch this Christmas?
CHARLOTTE, N.C. Hartford Financial Services Group Inc. said Monday it will receive a $2.5 billion investment from Allianz SE.
TRENTON, N.J. An injected Johnson & Johnson biologic drug used to treat several immune diseases controlled Crohn's disease, a difficult-to-treat bowel disorder, better than a widely used pill, a study found.
In this photo provided by the U.S. Coast Guard, Unified Command responders discuss conditions at a diesel spill site on Goat Island, Texas, Thursday, Sept. 25, 2008. Teams have been working throughout the Houston-Galveston and Port Arthur, Texas, areas to identify, assess and remediate pollution sites since the passing of Hurricane Ike.
WASHINGTON Hurricane Ike's winds and massive waves destroyed oil platforms, tossed storage tanks and punctured pipelines. The environmental damage only now is becoming apparent: At least a half million gallons of crude oil spilled into the Gulf of Mexico and the marshes, bayous and bays of Louisiana and Texas, according to an analysis of federal data by The Associated Press.
KANSAS CITY, Mo. The buffet offers a variety of pizzas, with whole wheat crust, organic toppings and hormone-free cheese. The salad bar includes some greens and vegetables grown without pesticides in a nearby garden.
NEW YORK The original Carvel shop prepared to serve its last cones Sunday, more than seven decades after becoming the birthplace of an ice cream empire.
NEW YORK Hundreds of thousands of new cars and trucks that would have quickly made their way to people's driveways a year ago are now stacking up on dealer lots across the country, with potential buyers worried about whether they'll keep their jobs, be able to pay for gas, or qualify for a car loan.