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One of Washingtons senior senators urged the US Government last night to block the $700 billion (378 billion) rescue package for the banks, which would be the biggest bailout since the Great Depression. Fears that the intense political haggling will delay a vote and put a stop to the entire bailout triggered renewed sell-offs across equity and currency markets on both sides of the Atlantic yesterday.
Dollar takes beating as Henry Paulson faces barrage of demands over bailout
US stocks fell after the biggest two-day rally since 1987, led by regional banks that may get hurt by the government's $700bn bailout of the financial system.
US shares fall amid threat to regional banks
This may prove to be the dollars epochal moment the moment historians look back at as its major turning point.
US dollar set to be major casualty of Hank Paulson's bailout
Oil registered its biggest one-day gain in history as the US dollar suffered its worst day in seven years while the Dow Jones index closed down 373 points on a volatile day of trading on world markets.
Crude oil price jumps $25 in a day
The Bank of England's efforts to boost short-term money markets in the wake of last week's financial turmoil appear to have been successful. The 5 billion boost in interbank funding provided by central banks pushed down the interbank overnight lending rate so far that banks found it more lucrative to place their money in the Bank of England's standing deposit facility, which pays just 4 per cent interest.
Bank of England's cash injection loosens money supply
Investors owning Lehman Brothers bonds face potential losses of nearly $110bn, reflecting the sharp reductions in avalue of assets that are likely to be left to be paid out to creditors. In the week since Lehman Brothers filed for bankruptcy, the value of its bonds has plummeted.
Lehman bondholders could lose $110bn
A growing number of companies in the UK and US have been appealing to regulators for protection from short selling after the practice was banned or restricted for banks and other financial stocks in many countries last week. The SEC on Monday gave US exchanges control of the list of stocks protected from short sellers, which was extended to an extra 96 companies.
Companies seek extension of shorting ban
Hedge funds are searching for ways around the bans on short selling, even as the restrictions introduced last week in the US and UK spread to new countries. Managers said they would continue to place bets on their negative views on the banking sector, even as straightforward short sales were no longer possible
Hedge funds seek ways around shorting ban
Hedge funds could have an unprecedented level of cash pulled out by investors this quarter, according to insiders, just as they faced millions of pounds of losses from last week's shock regulation of short selling. It has been a tough year for the industry with high-profile funds blowing up, clients increasing redemptions, as well as public fury over short selling and increased threats of regulation.
Hedge funds suffer mass redemptions
Japanese banks are back. Fifteen years ago the bursting of Japan's economic bubble forced the country's once-mighty banks to scale back their international ambitions. But after a long convalescence, they are back strutting the world stage again.
Sun rises over Japan's new bank culture
Russias largest investment bank, Renaissance Capital, plans to 'exploit' the global financial crisis and expand internationally having announced a partnership with billionaire Mikhail Prokhorov.
Russia's largest investment bank to exploit downturn