Pols try to fix banking industry

On Saturday, the Bush administration proposed
granting the Treasury Department the ability to buy up to $700 billion
in distressed mortgage-related assets from private firms. The proposal
would raise the national debt ceiling to $11.3 trillion. The government also put together a plan
that makes investment banks Goldman Sachs and Morgan Stanley holding
companies, giving them access to Federal Reserve Bank of New York funds
and putting them under stricter regulations. Some of the winners amongst
the Wall Street chaos include J.P Morgan Chase, Bank of America and
Citigroup, all poised to rule investment banking because of their easy
access to vaults of deposits. Boutique firms, like Lazard and
Evercore Partners, are seizing clients and staff from fallen rivals.
And, nationwide, financial companies have announced 103,000 layoffs this year. TRD